What Is the Breakeven Point for Rough and Tough Clothiers

question 7

Multiple Choice

What is the breakeven point for Rough and Tough Clothiers, maker of heavy-duty dungarees? It has the following costs: $$\begin{array} { l l } \text { Raw materials: } & \$ 15 \text { per pair } \\\text { Labor costs: } & \$ 8 \text { per pair } \\\text { Commissions: } & \$ 2 \text { per pair } \\\text { Utilities: } & \$ 50,000 \\\text { Rent: } & \$ 96,000 \\\text { Taxes: } & \$ 30,000 \\\text { Salaries: } & \$ 150,000\end{array}$$ The price of the dungarees is $55 per pair.

• A) 13,040
• B) 10,867
• C) 25,000
• D) 17,650

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Definitions:

Identical

Exactly the same in every detail; not different in any way.

Multicultural Organization

Is a firm that values diversity but systematically works to block the transfer of societally based subcultures into the fabric of the organization.

Pluralism

A condition or system in which multiple distinct groups, cultures, or entities coexist within a society or organization, accepting and respecting diversities.

Observable Culture

Is the way things are done in an organization.