Grand gimmicks company produces a single product

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Reference no: EM13966125

Grand Gimmicks Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing the selling price to $190 per unit. Assume that the cost of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price.

At the current selling price of $170 per unit, what dollar volume of sales per month is necessary for Grand Gimmicks to generate monthly operating income of $12,000?

	A.	$24,162
	B.	$51,063
	C.	$58,838
	D.	$77,520

Reference no: EM13966125

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