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

question 187

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 units is ________.

• A) 7,500
• B) 15,030
• C) 5,003
• D) 3,754

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Definitions:

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, highly addictive and illegal.

Caffeine

A stimulant chemical found in coffee, tea, and various other foods and drinks that affects the central nervous system, enhancing alertness and reducing fatigue.

Tobacco

A plant product containing nicotine which can be used in various forms, including smoking and chewing, often associated with health risks.

Benzodiazepines

A class of psychoactive drugs used primarily for treating anxiety, seizures, insomnia, and for inducing relaxation before surgeries.