Dirth Company Sells Only One Product at a Regular Price

question 93

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

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

---

Definitions:

Cohesive

Possessing the ability to stick together or form a unified whole, often referring to the unity or bond within a group or organization.

Group Think

A phenomenon where a group's desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Individual

Pertaining to a single person or thing, separate from others, emphasizing the importance of personal identity.

Agenda

A list or plan outlining items to be discussed or acted upon in a meeting or gathering.