Question

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

Answer 1

Answer:

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

Answer 2

Answer:

8000 shirts

Explanation:

every shirt sold is 25 dollars minus 5 and minus 10 is 10 dollars profit per shirt the start up price is 80000 and 80000 devided by 10 is 8000