Atlas Company Sells Only One Product at a Regular Price

question 29

Multiple Choice

Atlas Company sells only one product at a regular price of $10.00 per unit.Variable expenses are 70% of sales, and fixed expenses are $50,000.Management has decided to decrease the selling price to $9.00 in the hope of increasing its volume of sales.What is the sales dollars level required to break even at the old price of $10.00? (Note: Round answer to two decimal places.)

• A) $166,666.67
• B) $126,000.50
• C) $180,000.30
• D) $150,000.25

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Definitions:

Strengths

The natural talents and abilities that individuals possess which enable them to perform at their best.

Flow

A mental state in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment.

External Rewards

Incentives provided by external factors, such as money, praise, or trophies, which motivate behavior.

Focused Concentration

The mental effort directed toward a single task or subject, eliminating distractions to achieve a heightened state of awareness and productivity.