Figure 8-4 Dirth Company Sells Only One Product at a Regular Price

Multiple Choice

Figure 8-4
Dirth Company sells only one product at a regular price of £7.50 per unit. Variable expenses are 60 per cent 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.
-Refer to Figure 8-4. What is the new break-even point in units for Dirth Company when the selling price is £6.00?

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