You Have Been Asked to Calculate the Break-Even Point for a New

question 27

Multiple Choice

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

---

Definitions:

Ethical Decisions

Choices made based on moral principles and values that consider the welfare and rights of others.

Character Traits

Enduring qualities or features of an individual's personality that are evident in their behavior and attitudes.

Ethical Behavior

Acting in ways consistent with societal norms and values, including honesty, fairness, and integrity, particularly in professional settings.

Morally Disengage

The psychological process where individuals justify their unethical actions to themselves or others, thus easing the guilt associated with such behaviors.