Dirth Company Sells Only One Product at a Regular Price

Multiple Choice

Dirth Company 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. What is the sales dollars level required to break even at the old price of $7.50?

A) $75,000
B) $12,000
C) $18,000
D) $50,000