[The Following Information Applies to the Questions Displayed Below

question 10

Multiple Choice

[The following information applies to the questions displayed below.]
Accents Associates sells only one product,with a current selling price of $70 per unit.Variable costs are 40% of this selling price,and fixed costs are $12,000 per month.Management has decided to reduce the selling price to $65 per unit in an effort to increase sales.Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.
-At the current selling price of $70 per unit,what dollar volume of sales per month is required for Accents to earn a monthly operating income of $15,000?

• A)$25,000
• B)$30,000
• C)$45,000
• D)Some other amount

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