117.Stan Todd, Inc. wants to manufacture a new cell phone that can be worn on the wrist. Information from doing market research shows that he can sell this phone for $25 each. His fixed costs would be $145,000 a year and variable costs would amount to $10 per phone.(1) What would the contribution margin ratio be?(2) What sales volume in units would Stan need to break-even?(3) What sales volume in units would Stan need to earn $200,000 profit?(4) What would be the margin of safety if he sold 25,000 units (use the information calculated in #2)?
118.Cost-volume-profit analysisDiana Company, a sole proprietorship, sells only one product. The regular price is $160. Variable costs are 55% of this selling price, and fixed costs are $8,400 a month.Management decides to decrease the selling price from $160 to $145 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision.(a) At the original selling price of $160 a unit, what is the contribution margin ratio? _______________%(b) At the original selling price of $160 a unit, what dollar volume of sales per month is required for Diana Company to break-even? (Round your answer to the nearest whole dollar) $_______________(c) At the original selling price of $160 a unit, what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $6,500? (Round your answer to the nearest whole dollar) $________________(d) At the reduced selling price of $145 a unit, what is the contribution margin ratio? _______________%(e) At the reduced selling price of $145 a unit, what dollar volume of sales per month is required to break-even? (Round your intermediate percentage to one decimal place and final answer to the nearest whole dollar) $_______________
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