Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Task 3: Disano Company, a sole proprietorship, seils only one product. The regular price is 3160. Variable costs are 55% of this selling price, and

image text in transcribed
image text in transcribed
Task 3: Disano Company, a sole proprietorship, seils only one product. The regular price is 3160. Variable costs are 55% of this selling price, and xed costs are 38,400 a month. Management decides to decrease the selling price from Si 60 to 8145 per unit. Assume that the cost of the product and the xed operating expenses are not changed by this pricing decision. (a) At the original selling price of 3160 a unitr what is the contribution margin ratio? 93 (b) At the original selling price of 8160 a unit, what dollar volume of sales per month is required for Diana Company to break-even? {Round your answer to the nearest whole doliar) S (c) At the original seliing price of Si 60 a unit. what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of 36,500? (Round your answer to the nearest whole doliar) S (d) At the reduced selling price of 3145 a unit, what is the contribution margin ratio?I 96 (e) At the reduced selling price of 8145 a unit, what dollar volume of sales per month is required to break-even? (Round your intermediate percentage to one decimal place and nal answer to the nearest whole doliar) S 0') Show the breakeyen point by extracting relevant information from the case in MS Excel

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

16th edition

0077664078, 978-0077664077, 78111048, 978-0078111044

More Books

Students also viewed these Accounting questions