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

question 160

Multiple Choice

You have been asked to calculate the break-even point for a new line of shirts. The selling price will be $35 per shirt. The labour 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)4,000 shirts
• C)2,286 shirts
• D)3,000 shirts

Recognize the effects of technological advances on industry supply and equilibrium.

Describe the process and outcomes of general and partial equilibrium analysis.

Evaluate the impact of changes in consumer preferences on market dynamics and resource allocation.

Understand the implications of technological change on market efficiency and firm strategy.

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Definitions:

Nullification Crisis

The 1832 attempt by the State of South Carolina to nullify, or invalidate within its borders, the 1832 federal tariff law. President Jackson responded with the Force Act of 1833.

Prime Field Hand

In historical contexts, especially during slavery in the United States, a term referring to enslaved African Americans who were considered to be the most physically capable and thus assigned to demanding field labor.

Slaveholding Class

Refers to the segment of society that owned slaves, primarily found in societies with agrarian economies where slave labor was used for agricultural production.

Paternalist Ethos

A belief system or societal attitude that promotes the idea of providing guidance or caring for others in a manner reflective of a parental figure.