Dorian Company Produces and Sells a Single Product

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-If the selling price is reduced by 5%, variable expenses reduced by $1.00, and fixed expenses increased to a total of $38,400, how many units would need to be sold to earn a net operating income of $21,000?

A) 1,000
B) 2,700
C) 1,700
D) 2,950