Heath Ltd owns and operates a textile manufacturing plant. Garments are sold for $40 each. The fixed plant and equipment costs are $51 600 per annum. Producing each garment incurs $15 of labour costs and $7.80 of material costs. If Heath Ltd is considering advertising costs of $4300, how many garments must be sold to break even?
A) 1397 garments
B) 1736 garments
C) 2236 garments
D) 3250 garments
Correct Answer:
Verified
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