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

---

Definitions:

Continuous Reinforcement

A reinforcement schedule in which a reward follows every correct response, often used to teach new behaviors.

Incentive Motivation

The drive to engage in an action or behavior due to the allure of external rewards or incentives.

Goal Object

The specific target or outcome that a person's efforts or actions are intended to achieve.

Mediator

An entity or substance that plays a role in the process leading to a specific result or outcome, often used in the context of scientific research or conflict resolution.