You have been asked to calculate the break-even point for a new line of souvenir tee-shirts.The selling price will be $25 per shirt.The labor costs will be $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) 1,715 shirts
B) 2,286 shirts
C) 3,000 shirts
D) 4,000 shirts
E) 8,000 shirts
Correct Answer:
Verified
Q219: Break-even analysis refers to
A)a process that investigates
Q220: The quantity at which total revenue and
Q221: The owner of a carwash pays $2,500
Q222: A break-even chart refers to a
A)graphic presentation
Q223: FIGURE 12-7 Q225: FIGURE 12-7 Q226: A graphic presentation of the break-even analysis 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