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