lower prices, and the steel producers have increased raw material costs. Grover's contribution margin has shrunk to $40\%$ of revenues. The company's monthly operating income, prior to these pressures, was $$65,000.$

Read the requirements.

Requirement $1.$ To maintain this same level of profit, what sales volume $($in sales revenue$)$ must Grover now achieve?

Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach.

$($ Fixed expenses $+$ Operating income