Figure 8-4 Dirth Company Sells Only One Product at a Regular Price

question 17

Multiple Choice

Figure 8-4
Dirth Company sells only one product at a regular price of £7.50 per unit. Variable expenses are 60 per cent 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.
-Refer to Figure 8-4. What is the new break-even point in units for Dirth Company when the selling price is £6.00?

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

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Definitions:

Telecommuting

A work arrangement in which employees do not commute to a central place of work but work remotely, usually from home, utilizing the internet and communication technology.

Promotion Time

A period during which marketing efforts are intensified to increase awareness or sales of a product or service, often featuring special offers or discounts.

Teleconferencing

A method of using electronic media to conduct meetings or discussions among people in different locations, via audio, video, or web-based platforms.

Videopresence

Utilizes video conferencing technology to create a virtual presence for communication or collaboration, irrespective of the geographical location of the participants.