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Question 11 of 15 -12 iii View Policies Current Attempt in Progress Novak Company estimates that variable costs will be 51% of sales, and fixed costs will total $1,862,000. The selling price of the product is $10. Compute the break-even point in (1) units and (2) dollars. (Round intermediate calculation to 2 decimal places, eg. 52.75.) Break-even sales units (2) Break-even sales $ e Textbook and Media Assuming actual sales are $4,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (Round ratio to decimal BI O G Type here to search 2 - Question 10 of 15 -12 Current Attempt in Progress Pina Colada Company reports the following operating results for the month of August: sales $380,000 (units 5,000), variable costs $246,000, and fixed costs $97.000. Management is considering the following independent courses of action to increase net income. 1. 2. Increase selling price by 15% with no change in total variable costs or units sold. Reduce variable costs to 69% of sales. Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places eg. 2.25 and final answer to decimal places, e.g. 12,125.) 1. Net Income 2 Net Income $ Which course of action will produce the higher net income? e Textbook and Media O c 3 D Sype here to search

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