What is the break-even quantity?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate the break-even point for a new line of shirts. Producing and delivering one shirt to the distributor costs the company $32. The price per shirt is $48. Fixed costs attributed to producing the shirts, e.g., administration, sales and marketing expenses, come to a total of $120,0000. What is the break-even quantity?
Group of answer choices:
A) 6,000 shirts.
B) 3,500 shirts.
C) 7,500 shirts.
D) 13,333 shirts.
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