Cost-volume-profit analysis
Diana Company,a sole proprietorship,sells only one product.The regular price is $160.Variable costs are 55% of this selling price,and fixed costs are $8,400 a month.
Management decides to decrease the selling price from $160 to $145 per unit.Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision.
(a)At the original selling price of $160 a unit,what is the contribution margin ratio? ________%
(b)At the original selling price of $160 a unit,what dollar volume of sales per month is required for Diana Company to break-even? (Round your answer to the nearest whole dollar. )$________
(c)At the original selling price of $160 a unit,what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $6,500? (Round your answer to the nearest whole dollar. )$________
(d)At the reduced selling price of $145 a unit,what is the contribution margin ratio? ________%
(e)At the reduced selling price of $145 a unit,what dollar volume of sales per month is required to break-even? (Round your intermediate percentage to one decimal place and final answer to the nearest whole dollar. )$________

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The Answer of Cost-volume-profit analysis
Diana Company,a sole proprietorship,sells only one product.The regular price is $160.Variable costs are 55% of this selling price,and fixed costs are $8,400 a month.
Management decides to decrease the selling price from $160 to $145 per unit.Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision.
(a)At the original selling price of $160 a unit,what is the contribution margin ratio? ________%
(b)At the original selling price of $160 a unit,what dollar volume of sales per month is required for Diana Company to break-even? (Round your answer to the nearest whole dollar. )$________
(c)At the original selling price of $160 a unit,what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $6,500? (Round your answer to the nearest whole dollar. )$________
(d)At the reduced selling price of $145 a unit,what is the contribution margin ratio? ________%
(e)At the reduced selling price of $145 a unit,what dollar volume of sales per month is required to break-even? (Round your intermediate percentage to one decimal place and final answer to the nearest whole dollar. )$________

Cost-Volume-Profit Analysis Diana Company,a Sole Proprietorship,sells Only One Product.The Regular Price Is