Victoria company reports the following operating results for the month of april.

victoria company
cvp income statement
for the month ended april 30, 2020
total
per unit
sales (9,000 units) $450,000 $50
variable costs 270,000 30.00
contribution margin 180,000 $20.00
fixed expenses 150,000
net income $30,000

management is considering the following course of action to increase net income: reduce the 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 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
break-even point $
margin of safety $

(b1) assuming changes to sales price and volume as described above.

break-even point
break-even point $
margin of safety $

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.