Dirth Company Sells Only One Product at a Regular Price

question 48

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

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Definitions:

Delusions and Hallucinations

False beliefs and perceptions not connected to reality, often seen in various mental health conditions.

Token Economy

A behavior modification system that utilizes token reinforcement for desired behaviors, which can later be exchanged for privileges or treats.

Milieu Therapy

A therapeutic approach that utilizes the environment and community within a psychiatric hospital or residential facility to promote healing and change.

Antipsychotic Drugs

Medications used to manage psychosis, including disorders like schizophrenia, by affecting neurotransmitter levels in the brain.