Dirth Company Sells Only One Product at a Regular Price

question 14

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 contribution margin ratio when the selling price is reduced to $6 per unit?

• A) 25%
• B) 40%
• C) 75%
• D) 60%

Recognize the importance of resource availability and administrative support for health projects.

Identify flaws and challenges in health care legislation and planning over the past decades.

Acknowledge the necessity of continuous assessment and adaptation in health project management.

Comprehend the historical context and impact of significant health care amendments and acts.

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Definitions:

Forecasting Method

Techniques used to predict future data points, events, or trends based on current and historical data.

Seasonal Indexes

Quantitative measures that adjust data for recurring seasonal effects to better understand underlying trends.

Motor Oil Sales

The volume or amount of motor oil sold within a specific period.

Centered Moving Averages

A method used in time series analysis to smooth out short-term fluctuations and highlight longer-term trends or cycles by averaging data points in the middle of a set time window.