Final answer:
To find the break-even price, we divide the firm's fixed costs by the break-even point in units and add the variable cost per unit. For this firm, the break-even price is $6.75 per unit.
Step-by-step explanation:
To calculate the price at which the firm breaks even, we use the break-even point formula, where the break-even point in units is given by the fixed costs divided by the price per unit minus the variable cost per unit. In this case, the fixed costs are $30,000, the variable cost per unit is $0.75, and the break-even point is 5,000 units.
The formula for the break-even point in units is:
Break-even point (units) = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Plugging in the values we have:
5,000 = $30,000 / (Price per Unit - $0.75)
Now, by solving for 'Price per Unit', we get:
Price per Unit = ($30,000 / 5,000) + $0.75 = $6.00 + $0.75 = $6.75
The correct answer is therefore B. $6.75.