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. Additionally, the cost of materials will be $10per shirt. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year.What is the break-even in units and BEP in dollars?Formulas:Contribution Margin = Unit Selling Price-Unit Variable CostProfit - Total Revenue - Total CostorProfit - Quantity Sold (Selling Price per unit - Variable Cost per unit) - Fixed CostFixed CostBreak-even (quantity) =Unit Selling Price - Unit Variable CostBreak-even ($) = Break-even (quantity). X Quantity SoldFixed Cost + Profit DesiredUnit Selling Price - Unit Variable CostTarget Quantity for certain profit =

Break even point in units = Fixed costs / contribution margin per unit Break even point in sales…

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. Additionally, the cost of materials will be $10 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. What is the break-even in units and BEP in dollars? Formulac

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. Additionally, the cost of materials will be $10 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. What is the break-even in units and BEP in dollars? Formulac

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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