Accents Associates sells only one product, with a current selling price of $40 per unit. Variable costs are 20% of this selling price, and fixed costs are $20,000 per month. Management has decided to reduce the selling price to $35 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.

18.Q: Required information At the current selling price of $40 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $10,000?

A: A: $20,000. B:$750,000.C: $37,500. D:Some other amount.

19. Q:Required information At the current selling price of $40 per unit, the contribution margin ratio is:

A: A:8%. B:160%.C: 20%.D: 80%.

20. Q:Required information At the current selling price of $40 per unit, the dollar volume of sales per month necessary for Accents to break-even is:

A: A:$20,000. B:$25,000. C:$125,000. D:Some other amount.