The manager at the Yarn Shoppe needs to determine the target price per wool yarn so that she can sell 50 yarns and earn an operating income of? $1,250.

Review the following information and calculate what the price should? be:

Target contribution margin ?$3.150

Fixed costs ?1,900

Targeted operating income ?$1,250

Variable cost per unit 25

A. ?$90.

B. ?$80.

C. $70.

D. ?$88.

E.?$71.