Griggs Company produces a single product with a current selling price of $170. Variable costs...
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Accounting
Griggs Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing the selling price to a proposed $190 per unit. Assume that the variable cost per unit of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price.
Hint: Treat each situation (current and proposed price) as separate potential scenarios when evaluating each question.
At the current selling price of $170 per unit, closest to what dollar volume of sales per month is necessary for Griggs to generate a monthly profit of $12,000? (Round the intermediate percentage to one decimal place.)
Multiple Choice
$51,063
$24,162
$77,617
$58,838
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