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

---

Definitions:

Word Root

In medical terminology, the base part of a word that gives it its core meaning, often derived from Latin or Greek.

Prefix

A word, letter, or number placed before another to alter its meaning.

-Asthenia

A suffix used in medical terms to denote a weakness or lack of strength in a certain part of the body.

-Ectomy

A suffix used in medical terms to denote the surgical removal of a specified part of the body.