Diamonds in the Ruff Sells Only One Product at a Regular

question 11

Multiple Choice

Diamonds in the Ruff sells only one product at a regular price of $7.50 per unit.Variable expenses are 60% 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.How many sales (in dollars) were required to break even at the old price of $7.50 per unit?

• A)$12,000
• B)$18,000
• C)$50,000
• D)$75,000

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Definitions:

Personal Fable

A belief held by adolescents that their thoughts, feelings, and experiences are unique and not understood by others.

Actuarial Prediction

Predicting an individual’s outcome based on group characteristics, such as predicting how likely an individual is to suffer a heart attack based on the frequency of heart attacks in large samples of people with similar characteristics (same age, gender, socioeconomic status, etc.).

Cognitive Development

The process through which individuals acquire and understand knowledge, develop problem-solving skills, and reason over time.

Diverse Beliefs

The presence and acceptance of a wide range of cultural, religious, and ideological perspectives within a society or group.