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:

Ecto-

A prefix meaning "outside" or "external," used in biological and medical terminology.

Out

Positioned or situated beyond the limits or confines of a specified place or area.

Outer

Referring to the external part or surface of something.

Pericardial

Related to the pericardium, the membrane enclosing the heart.