Nonesuch Company Sells Only One Product at a Regular Price

question 11

Multiple Choice

Nonesuch 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 dollar level is needed to obtain a before-tax profit of $60,000 when the selling price is $6.00 per unit?

• A)$90,000
• B)$120,000
• C)$72,000
• D)$360,000

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