Oriole Company reports the following operating results for the month of April. ORIOLECOMPANY CVP Income Statement For the Month Ended April 30, 2022 Total Per Unit $495,000 $25 297,000 Sales (19,800 units) Variable costs Contribution margin Fixed expenses Net income Break-even point Break-even point 198,000 165,000 $33,000 $ 15 Margin of safety $ $10 Percent of Sales Management is considering the following course of action to increase net income: Reduce the unit selling price by 4%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in sales units and sales dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.) (a) Assuming no changes to unit selling price or costs. 100 % 60 units 40 % (b1) Assuming changes to unit selling price and volume as described above. Break-even point Break-even point Margin of safety $ $ units
Oriole Company reports the following operating results for the month of April. ORIOLECOMPANY CVP Income Statement For the Month Ended April 30, 2022 Total Per Unit $495,000 $25 297,000 Sales (19,800 units) Variable costs Contribution margin Fixed expenses Net income Break-even point Break-even point 198,000 165,000 $33,000 $ 15 Margin of safety $ $10 Percent of Sales Management is considering the following course of action to increase net income: Reduce the unit selling price by 4%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in sales units and sales dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.) (a) Assuming no changes to unit selling price or costs. 100 % 60 units 40 % (b1) Assuming changes to unit selling price and volume as described above. Break-even point Break-even point Margin of safety $ $ units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
P11.
Transcribed Image Text:Oriole Company reports the following operating results for the month of April.
ORIOLECOMPANY
CVP Income Statement
For the Month Ended April 30, 2022
Total
Per Unit
$495,000
$25
297,000
Sales (19,800 units)
Variable costs
Contribution margin
Fixed expenses
Net income
Break-even point
Break-even point
198,000
165,000
$33,000
$
15
Margin of safety $
$10
Percent of Sales
Management is considering the following course of action to increase net income: Reduce the unit selling price by 4%, with no changes
to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%.
Using the contribution margin technique, compute the break-even point in sales units and sales dollars and margin of safety in dollars:
(Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.)
(a) Assuming no changes to unit selling price or costs.
100 %
60
units
40 %
Transcribed Image Text:(b1) Assuming changes to unit selling price and volume as described above.
Break-even point
Break-even point
Margin of safety
$
$
units
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