You have been asked to calculate the break-even point for a new line of shirts. The selling price will be $35 per shirt. The labour costs will be $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?

You have been asked to calculate the break-even point for a new line of shirts. The selling price will be $35 per shirt. The labour costs will be $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?

You have been asked to calculate the break-even point for a new line of shirts. The selling price will be $35 per shirt. The labour costs will be $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.

1,715 shirts


B.

2,286 shirts


C.

3,000 shirts


D.

4,000 shirts



Answer: D


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