Dirth Company Sells Only One Product at a Regular Price

question 92

Multiple Choice

Dirth Company sells only one product at a regular price of $7.50 per unit. Variable expenses are 60% of sales and fixed expenses are $30,000. Management has decided to decrease the selling price to $6.00 in hopes of increasing its volume of sales. What is the sales dollars level required to break even at the old price of $7.50?

• A) $75,000
• B) $12,000
• C) $18,000
• D) $50,000

---

Definitions:

First Grade

The initial grade of primary education in systems that follow a certain sequence, typically involving students aged six to seven years.

Standards

Established criteria or benchmarks that serve as a reference point for quality, performance, or behavior.

Physical Environment

The external surroundings and conditions in which individuals live or operate, including natural and built settings.

Assessment

The process of evaluating or measuring knowledge, skills, attitudes, or abilities.