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

question 45

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 sales pound level is needed to obtain a before-tax profit of £60,000 when the selling price is £6.00 per unit?

• A)£360,000
• B)£120,000
• C)£72,000
• D)£90,000

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Definitions:

Phlebitis

Inflammation of a vein, usually in the legs, that can cause pain, swelling, redness, and sometimes leading to thrombosis.

Veins Inflammation

Also known as phlebitis, a medical condition characterized by the inflammation of the veins, leading to pain and swelling.

Artery Wall

The multilayered structure of arteries, designed to withstand high pressure from heartbeats and effectively transport blood away from the heart.

Subclavian Artery

A major artery that supplies blood to the head and arms.