1. Disk City, Inc. is a retailer for digital video disks. The projected operating income for the current year is $200,000 based on a sales volume of 200,000 video disks. Disk City has been selling the disks for $16 each. The variable costs consist of the $10 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are $600,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disk will increase 30%. a. Calculate the break-even point for the current year in number of video disks. b. What will be the company's operating income for the current year if there is a 10% increase in sales volume? c. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same operating income as projected for the current year if the unit selling price remains at $16? d. In order to cover a 30% increase in purchase price for the coming year and still maintain the current contribution margin ratio, what selling price per disk must the company establish for the coming year