Krait Products sells camping equipment. One of the companys products, a camp lantern, sells for $100 per unit. Variable expenses are $70 per lantern, and fixed expenses associated with the lantern total $144,240 per month.

Required:

Krait Products sells camping equipment. One of the companys products, a camp lantern, sells for $100 per unit. Variable expenses are $70 per lantern, and fixed expenses associated with the lantern total $144,240 per month.

Required:

At present, the company is selling 9,015 lanterns per month. The sales manager is convinced that a 5% reduction in the selling price will result in a 20% increase in the number of lanterns sold each month. How many lanterns would have to be sold at the new selling price to yield a minimum net operating income of $72,960 per month? (Do not round intermediate calculations.)