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Disano Company, a sole proprietorship, sells only one product. The regular price is $ 1 6 0 . Variable costs are 5 5 % of
Disano Company, a sole proprietorship, sells only one product. The regular price is $ Variable costs are of this selling price, and fixed costs are $ a month.
Management decides to decrease the selling price from $ to $ 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 $ a unit, what is the contribution margin ratio?
b At the original selling price of $ a unit, what dollar volume of sales per month is required for Diana Company to breakeven? Round your answer to the nearest whole dollar $
c At the original selling price of $ a unit, what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $Round your answer to the nearest whole dollar $
d At the reduced selling price of $ a unit, what is the contribution margin ratio?
e At the reduced selling price of $ a unit, what dollar volume of sales per month is required to breakeven? Round your intermediate percentage to one decimal place and final answer to the nearest whole dollar $
f Show the breakeven point by extracting relevant information from the case in MS Excel.
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