You Are Selling a New Line of T-Shirts on the Boardwalk

question 217

Multiple Choice

You are selling a new line of T-shirts on the boardwalk. 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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