WinPan Company sells one product. The relevant information about the product line of WinPan

Cumpany appears below:

There was no inventory in stock at the beginning of the year.

Required:

a$)$ What is the selling price per units?

b$)$ What is the contribution margin ratio?

c$)$ Calculate the margin of safety in units and in dollar sales.

d$)$ If the Company's fixed expenses could be decreased by $$18,000,$ what would be the new

break even sales units and dollar sales?

e$)$ The Company's target for the month is to earn a target operating income of $$300,000.$

How many units must be sold to achieve this goal?

f$)$ Assume that with the new price increases, variable costs per unit increased by $$10$ and

total fixed costs increase by $$180,000.$ The business expects these increases to result in a

$10\%$ decrease in the expected sales of $10,000$ units. By how much should WinPan

increase unit selling price if the company wishes to earn the target operating income of

$$300,000?$