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Sliva [168]
2 years ago
5

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? a. 8,000 shirts b. 16,000 shirts c. 5,334 shirts d. 3,200 shirts
Business
1 answer:
Ad libitum [116K]2 years ago
8 0

Answer:

Option (a) is correct.

Explanation:

Contribution per unit:

= Selling price per unit - Variable cost

= Selling price per unit - (Material  + labor cost)

= $25 - ($10 + $5)

= $25 - $15

= $10

Fixed cost = Administrative cost + Sales and marketing expense

                 = $60,000 + $20,000

                 = $80,000

Break-even quantity:

= Fixed cost ÷ Contribution per unit

= $80,000 ÷ $10

= 8,000 shirts

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Answer:

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6 0
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Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $49,3
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Answer:

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Explanation:

Given,

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Contribution margin ratio is 25%

So,

Contribution = $242,000 × 25%

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Therefore, Total Contribution is :

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= $58,200

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Common Fixed Expense = Income before Common Fixed Expense - Income after Common Fixed Expense (Net Income)

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True or false: the aggressive Driver typically except that collision causing behavior are aggressive
Ede4ka [16]
This could depend on the person who caused the collision. However, it would most likely be false because very rarely will the person want to accept the consequences.
8 0
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<u>Answer:</u>

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pantera1 [17]

Answer:

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