Question: please help me solve this, i got different answers. thanks A) Ivory Company, a sole proprietorship, sells only one product. The regular price is $185.

 please help me solve this, i got different answers. thanks A)

please help me solve this, i got different answers. thanks

A) Ivory Company, a sole proprietorship, sells only one product. The regular price is $185. Variable costs are 60% of this selling price, and fixed costs are $12,500 a month. Management decides to decrease the selling price from $185 to $170 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 $185 a unit, what is the contribution margin ratio? % (b) At the original selling price of $185 a unit, what dollar volume of sales per month is required for Diana Company break-even? $ (C) At the original selling price of $185 a unit, what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $15,500? $ (d) At the reduced selling price of $170 a unit, what is the contribution margin ratio? % (e) At the reduced selling price of $170 a unit, what dollar volume of sales per month is required to break-even? $_ B) Explain the significance of Contribution Analysis with special reference to the example above

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