[The Following Information Applies to the Questions Displayed Below

question 64

Multiple Choice

[The following information applies to the questions displayed below.]
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? (Round the intermediate percentage to one decimal place,and round the answer up to the next whole unit. )

• A)$6,178
• B)$8,299
• C)$26,554
• D)$20,800

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Definitions:

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, reflected in a company's cash flow statement.

Purchase And Sale

Purchase and sale refer to the process of acquiring goods or services (purchase) and then offering them for consumption or usage by others (sale), serving as the fundamental activity of any commercial business.

Financing Activities

Transactions and events where a company either raises funds through borrowing or repaying debt, or issuing and repurchasing its own shares, as seen in the cash flow statement.

Retained Earnings

The amount of net income retained in the corporation.