Your company's energy drink sells for $1.99 a can.Variable costs are $0.89 and sales are 250,000 per month.

Calculate the volume hurdle required to maintain your current profitability under these scenarios:

1. A price reduction of 5% (variable cost remains the same).
2. Variable cost increase of 2% (price remains the same).
3. Price is increased by 11% and variable cost is reduced by 3%.

The answer to the questions should be in the following steps & format:

1. Contribution Margin = Price - Variable Cost
2. New Contribution Margin = New Price - Variable cost
3. %VH = - Contribution Margin Change / New Contribution Margin
4. Volume Hurdle = Quantity x % Volume Hurdle
5. Original Profitability = Quantity x (Price - Variable Cost)
6. New Profitability = Quantity x (Price - Variable Cost)
7. Inference needs to be provided at the end what will be the volume of units required to remain at the same profitability.