Nonesuch Company Sells Only One Product at a Regular Price

question 68

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 new break-even point in units for Nonesuch Company when the selling price is $6.00?

• A)10,000 units
• B)20,000 units
• C)4,000 units
• D)6,667 units

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Definitions:

Concentration

Concentration refers to the ability to focus one's attention on a specific task or object while ignoring other distractions.

James-Lange Theory

Emotions result from the experience of physiological reactions in the body.

Fear

An emotional response to a perceived threat, which can be real or imagined, leading to fight, flight, or freeze reactions.

Trembling

Involuntary shaking movements of the body, which can occur due to emotional stress, fear, or medical conditions.