What increase in units maintain level of net income, Accounting Basics

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What increase in units maintain level of net income

Question:

Vargo Video's CVP income statement shows that total contribution margin is $320,000, and the company's contribution margin per unit is $200. Contribution margin can also be expressed in the form of the contribution margin ratio which in the case of Vargo is 40% ($200 / $500).

What effect will a 10% discount on selling price ($500 x 10% = $50)have on the breakeven point?

What effect will the new equipment have on the sales volume required to break even?

What increase in units sold will be needed to maintain the same level of net income?

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Accounting Basics: What increase in units maintain level of net income

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