Disk City, Inc is a retailer of digital video disks. The projected net 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 disks will increase $30$ percent. $($Ignore income

taxes.$)$

Calculate Disk City's break$-$even point for the current year in a number of

video disks.

What will be the company's net income for the current year if there is a $10$

percent increase in projected unit sales volume?

What volume of sales $($in dollars$)$ must Disk City achieve in the coming year

to maintain the same net income as projected for the current year if the

unit selling price remains at $$16?$

In order to cover a $30$ percent increase in the disk's purchase price for the

coming year and still maintain the current contribution$-$margin ratio, what

selling price per disk must Disk City establish for the coming year?