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Nonesuch Company Sells Only One Product at a Regular Price

Question 118

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 is the new break-even point in units for Nonesuch Company when the selling price is $6.00?


A) 10,000 units
B) 20,000 units
C) 4,000 units
D) 6,667 units

Correct Answer:

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