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A Company sells only one product at a regular price of 10.00 per unit. Variable expenses are 60 percent of sales and fixed expenses are

A Company sells only one product at a regular price of 10.00 per unit. Variable expenses are 60 percent of sales and fixed expenses are 60,000. Management has decided to decrease the selling price to 8.75 in the hope of increasing its volume of sales.

What is the contribution / sales % when the selling price is reduced to 8.75 per unit?

What is the new break-even point in units for Style Company when the selling price is 8.75?

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