RST Consulting offers two services with the following information:

• Service A: Selling price $500, Variable cost $200, Fixed costs $100,000
• Service B: Selling price $800, Variable cost $400, Fixed costs $150,000

Requirements:

1. Calculate the contribution margin and contribution margin ratio for each service.
2. Determine the breakeven point in sales dollars for RST Consulting.
3. Discuss how changes in service mix affect RST Consulting's profitability.
4. Analyze the impact of a 10% increase in Service A's selling price on overall profitability.
5. Recommend strategies to improve RST Consulting's cost structure based on CVP analysis.