Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started