Accents associates sells only single product with a current

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Accents Associates sells only single product, with a current S.P. of $90 per unit. Variable costs are 40% of this selling price, and fixed costs are $30,000 per month. Management has determined to reduce the selling price to $85 per unit in an effort to increase sales. Consider that the cost of the product and fixed operating expenses are not modified by this reduction in selling price.

At the current selling price of $90 per unit, what dollar volume of sales per month is needed for Accents to earn a monthly operating income of $10,000?

Reference no: EM13352114

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