Nonesuch Company Sells Only One Product at a Regular Price

question 83

Multiple Choice

Nonesuch Company sells only one product at a regular price of $7.50 per unit. Variable expenses are 60 percent 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)$50,000
• B)$12,000
• C)$18,000
• D)$75,000

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Prejudice

A preconceived opinion or judgment towards people, groups, or subjects, usually negative, formed without sufficient knowledge, thought, or reason.

Oppression

The systematic and unjust treatment or control of individuals or groups, often resulting in restricted freedom and inequality.

Economic Values

The importance assigned to goods and services based on their benefit to an individual or society, often influencing choices and behaviors.