Problem
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 variable cost per unit 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, closest to what dollar volume of sales per month is required for Grand Gimmicks to break-even?