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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 $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) $_______________
(f) Show the break-even point by extracting relevant information from the case in MS Excel.

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