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Cullumber Manufacturing Ltd has provided you with the following CVP income statement:
tableSales units$$per unitVariable costs,perunitContribution margin,$per unitFixed costs,Operating income,$
Management is considering the following course of action to increase operating income: reduce the selling price by with no: changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by
Calculate the breakeven point in units and sales doliars with no change in sales. Round contribution maryin natio to decimal places, eg Round units to decimal places, eg and dollar amount to decimal places, eg J
tableIn units,In dollarsBreakeven point,,
Calculate the breakeven point in units and sales dollars with the proposed change in sales price, Round units to decimal ploces, eg and dollor amount to decimal places, eg
tableIn units,In dollarsBreakeven point,$
Should management go forward with the reduction in sales price?
