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What Is the Breakeven Point for Rough and Tough Clothiers

Question 6

Multiple Choice

What is the breakeven point for Rough and Tough Clothiers, makers of heavy duty dungarees? They have the following costs:
Raw materials: $15 per pair
Labor costs: $ 8 per pair
Commissions: $ 2 per pair
Utilities: $ 50,000
Rent: $ 96,000
Taxes: $ 30,000
Salaries: $150,000
The price of the dungarees is $55 per pair.


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

Correct Answer:

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