Heath Ltd Owns and Operates a Textile Manufacturing Plant

Multiple Choice

Heath Ltd owns and operates a textile manufacturing plant. Garments are sold for $40 each. The fixed plant and equipment costs are $51 600 per annum. Producing each garment incurs $15 of labour costs and $7.80 of material costs. To make a profit of $4000, Heath Ltd must produce (to the nearest integer) :

A) 1390 garments.
B) 1727 garments.
C) 2224 garments.
D) 3233 garments.