You have been asked to calculate the break-even point for a new line of 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:
Verified
Q182: A break-even chart is a graphic presentation
A)that
Q185: The break-even point (BEP) = [_ ÷
Q200: The break-even point (BEP) = [Fixed cost
Q205: Ampro-Mag is a small company that makes
Q207: A graphic presentation of the break-even analysis
Q211: Washburn Guitars markets its guitars to four
Q212: Acme Shoe Co. sells heel replacement kits
Q213: A recently graduated business student decided to
Q214: Tim Marlow, the owner of The Clock
Q215: Acme Shoe Co. sells heel replacement kits
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents