Compute the dollar volume of sales per month

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Question - Accents Associates sells only one product, with a current selling price of $40 per unit. Variable costs are 20% of this selling price, and fixed costs are $20,000 per month. Management has decided to reduce the selling price to $35 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.

Required - At the current selling price of $40 per unit, compute the dollar volume of sales per month necessary for Accents to break-even?

Reference no: EM132530596

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