You Have Been Asked to Calculate the Break-Even Point for a New

Multiple Choice

You have been asked to calculate the break-even point for a new line of shirts. The selling price will be $35 per shirt. The labour costs will be $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) 1,715 shirts
B) 4,000 shirts
C) 2,286 shirts
D) 3,000 shirts