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 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 monetary sales level required to break even at the old price of £7.50?

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