Lindsay Company reported the following results from sales of 5,000 units of product A for the month of June:

Sales	$200,000
Variable Costs	(120,000)
Fixed Costs	(70,000)
Operating Income	$10,000

Assume that Lindsay increases the selling price of product A by 10% on July 1. How many units of product A would have to be sold in July to generate an operating income of $40,000?

Question 5 options:

A)

5,000

B)

4,500

C)

4,000

D)

5,500