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

question 259

Multiple Choice

have been asked to calculate the break-even point for a new line of souvenir T-shirts.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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Definitions:

Life Expectancy

The average period that an individual is expected to live based on current mortality and health trends.

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.

Latitude

A geographic coordinate that specifies the north-south position of a point on the Earth's surface.

Regression Analysis

A technique for determining the relationship intensity between variables, primarily used to predict values of a dependent variable based on values of independent variables.