Dirth company sells only one product at a regular price of $7.50 per unit. variable expenses are 60% of sales and fixed expenses are $30,000. management has decided to decrease the selling price to $6.00 in hopes of increasing its volume of sales (variable expenses were not changed). what is the contribution margin ratio when the selling price is reduced to $6 per unit? 25%40%75%60%

Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)