Dirth Company Sells Only One Product at a Regular Price

question 18

Multiple Choice

Dirth 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)$12,000
• B)$18,000
• C)$50,000
• D)$75,000

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Definitions:

Cervical Vertebrae

The seven vertebrae in the neck part of the spine, designated C1 through C7, supporting the skull and enabling various head movements.

Pivot

A central point or pin on which something rotates or balances, or, figuratively, a crucial factor or element around which something depends.

Dense Bones

Bones with higher mineral content and density, making them stronger and less susceptible to fractures compared to less dense bones.

Healthy

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.