What Is the Breakeven Point in Dollars for Zippy Dippy

question 16

Multiple Choice

What is the breakeven point in dollars for Zippy Dippy Swimwear, makers of bathing suits and accessories? They have the following costs:
$$\begin{array} { l l } \text { raw materials: } & \$ 25 \text { per bathing suit } \\& \$ 8 \text { per towel } \\& \$ 16 \text { per beach umbrella } \\& \$ 37 \text { per swimsuit cover-up } \\& \$ 18 \text { average per suit } \\& \$ 10 \text { per umbrella } \\& \$ 3 \text { per towel } \\\text { labor costs: } & \$ 20 \text { per cover-up } \\& \$ 12 \text { per item } \\& \$ 150,000 \\& \$ 196,000 \\\text { commissions: } & \$ 230,000 \\\text { utilities: } & \$ 550,000 \\\text { rent: } & \text { taxes: } \\\text { salaries: } & \text { The price of each suit is } \$ 85 . \\\text { The price of each towel is } \$ 25 . \\\text { The price of each umbrella is } \$ 40 . \\\text { The price of each cover-up is } \$ 81 .\end{array}$$

• A)$3,172,024
• B)$4,947,196
• C)$7,887,259
• D)$6,425,583

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Definitions:

Irish Immigrants

Individuals from Ireland who moved to another country, especially to the United States during the 19th and early 20th centuries, often to escape famine and economic hardship.

Seceded

The act of formally withdrawing from an organization, alliance, or union, particularly used in the context of the southern states leaving the Union before the Civil War.

Lincoln Elected

The event in 1860 when Abraham Lincoln became the 16th President of the United States, leading up to the Civil War.

South Carolina

A state in the southeastern region of the United States, known for its rich history and as the first state to secede from the Union during the Civil War.