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 sales dollar level is needed to obtain a before-tax profit of $60,000 when the selling price is $6.00 per unit?

a. $90,000

b. $120,000

c. $72,000

d. $360,000