108. Cost-volume-profit relationships
The following data are available for a product manufactured and sold by Logan Company:
  
Compute the following:
(a) Contribution margin per unit: $________________
(b) Number of units that must be sold to break-even: _______________ units
(c) Dollar sales volume to produce income of $864,000 before taxes: $________________

109. Cost-volume-profit analysis
Diana 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? $________________
(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? $_________________
(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? $________________