Dirth Company Sells Only One Product at a Regular Price

question 53

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 new break-even point in units for Dirth Company when the selling price is $6.00?

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

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Definitions:

Subsidized Loan Program

A financial aid program where the government or an organization offers loans at reduced interest rates or with favorable terms to support certain activities or sectors.

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A phenomenon where policy decisions are disproportionately influenced by small, well-organized groups at the expense of the larger public interest.

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