Question 8: A) Albert Inc, a sole proprietorship, sells only one product. The regular price is $275. Variable costs are 60% of this selling price and fixed costs are $35,500 a month Management decides to decrease the selling price from $275 to $250 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 $275 a unit, what is the contribution margin ratio? (6) At the original selling price of $275 a unit, what dollar volume of sales per month is required for Albert Inc to break-even? $_. At the original selling price of $275 a unit, what dollar volume of sales per month is required for Albert Inc to earn a monthly operating income of $20,750? $___ (d) At the reduced selling price of $250 a unit, what is the contribution margin ratio? (e) At the reduced selling price of $250 a unit, what dollar volume of sales per month is required to break-even? $_ B) Explain the significance of Contribution Analysis for an Organization with special reference to the example above