What Is the Breakeven Point for Rough and Tough Clothiers

Multiple Choice

What is the breakeven point for Rough and Tough Clothiers, maker of heavy-duty dungarees? It has the following costs: $$\begin{array} { l l } \text { Raw materials: } & \$ 15 \text { per pair } \\\text { Labor costs: } & \$ 8 \text { per pair } \\\text { Commissions: } & \$ 2 \text { per pair } \\\text { Utilities: } & \$ 50,000 \\\text { Rent: } & \$ 96,000 \\\text { Taxes: } & \$ 30,000 \\\text { Salaries: } & \$ 150,000\end{array}$$ The price of the dungarees is $55 per pair.

A) 13,040
B) 10,867
C) 25,000
D) 17,650