PROBLEM 1. Diamond Jim's makes and sells class rings for local schools. Operating information is as follows: Selling price per ring $600 Variable cost per ring Rings and stones $220 Sales commissions 48 Overhead 32 Annual xed cost Selling expenses $ 180, 000 Administrative expenses 105,000 Manufactunng 60,000 What is Diamond Jim's break-even point in rings? What is Diamond Jim's break-even point in sales dollars? What would Diamond J im's break-even point be if sales commissions increased to $54? What would Diamond Jim's break-even point be if selling expenses decreased by $6,000? 9-917?" PMBLIEM 2. Mel's Male Accessories sells wallets and money clips. Historically, the rm's sales have averaged three wallets for every money clip. Each wallet has an $8 contribution margin, and each money clip has a $6 contribution margin. Mel's incurs xed cost in the amount of $180,000. The selling prices of wallets and money clips, respectively, are $30 and $15. The corporate-wide tax rate is 40 percent. a. How much revenue is needed to break even? How many wallets and money clips does this represent? b. How much revenue is needed to earn a pre-tax prot of $1 50,000? How much revenue is needed to earn an after-tax prot of $1 50,000? If Mel's earns the revenue determined in (b) but does so by selling ve wallets for every two money clips, what would be the pre-tax prot (or loss)? Why is this amount not $150,000? 9.0