You have been asked to calculate the break-even point for a new line of souvenir T-shirts.The selling price will be $25 per shirt.The labor cost is $5 per shirt.The administrative costs of operating the company are estimated to be $60,000 annually and the sales and marketing expenses are $20,000 a year.Additionally,the cost of materials will be $10 per shirt.What is the break-even quantity?
A) 2,000 shirts
B) 3,200 shirts
C) 5,334 shirts
D) 8,000 shirts
E) 16,000 shirts
Correct Answer:
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