Tony's Beach T-Shirts Has Fixed Annual Operating Costs of $75,000

question 195

Multiple Choice

Tony's Beach T-Shirts has fixed annual operating costs of $75,000. Tony retails his T-shirts for $14.99 each and the variable cost per T-shirt is $4.99. Based on this information, the breakeven sales level in dollars is ________.

• A) $125,495
• B) $112,425
• C) $108,995
• D) $110,495

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Definitions:

Electric Shock

An abrupt discharge of electricity through a part of the body, causing injury or neurological disturbance.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Acquisition

Acquisition refers to the initial stage of learning or conditioning process where a response is first established and gradually strengthened.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.