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

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Definitions:

Fraud

A deliberate deception practiced to secure unfair or unlawful gain, often involving financial transactions.

Physical Harm

Injury or damage to the body of a person, which can result from accidents, violence, or other physical impact.

Below-Market Price

A price for goods or services that is lower than the current market rate or the value typically expected for similar items under normal market conditions.

Duress

A condition where an individual is forced or coerced into acting against their will or making decisions under pressure or threat.