You are selling a new line of T-shirts on the boardwalk. 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
selling at $25 per shirt you take away the cost of labor and materials which is $15 that gives you $10 profit for the shirts. Then operation costs plus expenses $20,000+$60,000 gives you $80,000. so taking $80,000 divide that by the shirt profit gives you $8000
