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Production Costs for Manufacturing T-Shirts Consist of a Fixed Cost

Question 76

Multiple Choice

Production costs for manufacturing T-shirts consist of a fixed cost of $18,000 plus variable costs of $2 per shirt. Each T-shirt sells for $8 dollars. How many T-shirts must be sold for the company to break even?


A) 2,250
B) 3,000
C) 9,000
D) 5,625

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