Question $1.$ 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 fixed operating expenses are not changed by this pricing decision.

Required:

Answer the following questions:

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 to Breakeven.

C$.$ At the original selling price of $$160$ a unit, how many units does the company need to break even? $($Round your answer to the nearest whole unit.$)$

D$.$ At the original sales price of $$160,$ calculate the number of units which the company needs to earn a monthly operating income of $$6,500?($Round your answer to the nearest whole unit.$)$

E$.$ At the reduced selling price of $$145$ a unit, what is the contribution margin ratio? Assume Variable cost is the same $(55\%$ of $$160).$

F$.$ 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.$)$