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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 necessary for Grand Gimmicks to generate monthly operating income of $12,000? (Round the intermediate percentage to one decimal place. )
A) $24,162
B) $51,063
C) $58,838
D) $77,617
Correct Answer:
Verified
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