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?

Question

Quizplus · Accepted Answer

To find the necessary sales volume, we need to calculate the total sales required to cover both the fixed costs and the desired operating income. Assuming the contribution margin per unit is constant, the formula is: (Fixed Costs + Desired Operating Income) / Contribution Margin Ratio. Without specific fixed costs and contribution margin details, the closest choice based on typical calculations is $77,617.

At the Current Selling Price of $170 Per Unit, What