Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. marigold company reports the following operating r

Marigold Company reports the following operating results for the month of April. MARIGOLD COMPANY CVP...

80.2K

Verified Solution

Question

Accounting

imageimage

Marigold Company reports the following operating results for the month of April. MARIGOLD COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (10,000 units) $500,000 $50 Variable costs 300,000 30.00 Contribution margin 200,000 $20.00 Fixed expenses 140,000 Net income $60,000 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in units and 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 selling price or costs. Break-even point 7000 units Break-even point 350000 A A Margin of safety $ 150000 (b1) Assuming changes to sales price and volume as described above. Break-even point 8000 units Break-even point $ $ Margin of safety

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

4. [22 pts] For the function ?(?) = 2?5 ? 9?4 + 12?3 ? 12?2...

Basic Math
Q

why differential signal cancels inductance? thanks

Electrical Engineering
Q

Which of the following plate boundaries involves the plates sliding past each other O Convergent...

Biology
Q

Q2 In a given process of an ideal gas dW 0 and dQ 0 Then...

Physics
Q

16 58 If the block at C is moving downward at 4 ft s determine...

Basic Math
Q

What is the coefficient of determination for Data Set B X 3 6 8 3...

Statistics
Q

6 Given the graph of f x find f x dx 7

Calculus
Q

PAUL CABLE SOURCE STARTED CONSTRUCTION ON A COMBINATION OFFICE AND WAREHOUSE BUILDING FOR ITS OWN...

Accounting
Q

Required information [The following information applies to the questions displayed below] Forten Company's current year...

Accounting
Q

What is the term used to describe the amount of accounts receivable that is actually...

Accounting
Q

[The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of...

Accounting
Q

[The following information applies to the questions displayed below.] ...

Accounting