Cathy's Towels Sells Three Items (Which It Purchases from a Supplier)

question 38

Multiple Choice

Cathy's Towels sells three items (which it purchases from a supplier) : bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths) . Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000, and the income tax rate, t, is 40%. How many bath towels must the firm sell at the breakeven point?

• A) 20,000.
• B) 36,000.
• C) 44,000.
• D) 51,000.
• E) 81,000.

---

Definitions:

Psychologically Healthy Workplace

A work environment that promotes employees' mental health and well-being, supports their psychological needs, and enhances job satisfaction and performance.

Psychological Capital

Psychological Capital is a positive psychological state characterized by high levels of self-efficacy, optimism, hope, and resilience.

Challenging Tasks

Complex or difficult duties or projects that require a high level of skill, effort, or problem-solving capacities.

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.