Dirth Company Sells Only One Product at a Regular Price

question 4

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 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:

Existential Import

The presupposition that a statement implies the existence of the subject it mentions.

Venn Diagram

A diagram representing mathematical or logical sets pictorially as circles or closed curves within an enclosing rectangle (the universal set), common elements of the sets being represented by intersections of the circles.

Traditional View

A perspective or approach that aligns with established or long-standing practices, beliefs, or interpretations.

Existential Import

A concept within logical and philosophical analysis focusing on the existential assumptions within propositional statements.