Question
Accents Associates sells only one product, with a current selling price of $120 per unit. Variable costs are 20% of this selling price, and fixed
Accents Associates sells only one product, with a current selling price of $120 per unit. Variable costs are 20% of this selling price, and fixed costs are $30,000 per month. Management has decided to reduce the selling price to $115 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. Required information At the current selling price of $120 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $10,000? $30,000. $1,000,000. $50,000. Some other amount. 19. Required information At the current selling price of $120 per unit, the contribution margin ratio is: 20%. 160%. 24%. 80%. 20. Required information At the current selling price of $120 per unit, the dollar volume of sales per month necessary for Accents to break-even is: $30,000. $37,500. $187,500. Some other amount.
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