Solved

What Is the Breakeven Point in Dollars for Zippy Dippy

Question 16

Multiple Choice

What is the breakeven point in dollars for Zippy Dippy Swimwear, makers of bathing suits and accessories? They have the following costs:
 raw materials: $25 per bathing suit $8 per towel $16 per beach umbrella $37 per swimsuit cover-up $18 average per suit $10 per umbrella $3 per towel  labor costs: $20 per cover-up $12 per item $150,000$196,000 commissions: $230,000 utilities: $550,000 rent:  taxes:  salaries:  The price of each suit is $85. The price of each towel is $25. The price of each umbrella is $40. The price of each cover-up is $81.\begin{array} { l l } \text { raw materials: } & \$ 25 \text { per bathing suit } \\& \$ 8 \text { per towel } \\& \$ 16 \text { per beach umbrella } \\& \$ 37 \text { per swimsuit cover-up } \\& \$ 18 \text { average per suit } \\& \$ 10 \text { per umbrella } \\& \$ 3 \text { per towel } \\\text { labor costs: } & \$ 20 \text { per cover-up } \\& \$ 12 \text { per item } \\& \$ 150,000 \\& \$ 196,000 \\\text { commissions: } & \$ 230,000 \\\text { utilities: } & \$ 550,000 \\\text { rent: } & \text { taxes: } \\\text { salaries: } & \text { The price of each suit is } \$ 85 . \\\text { The price of each towel is } \$ 25 . \\\text { The price of each umbrella is } \$ 40 . \\\text { The price of each cover-up is } \$ 81 .\end{array}


A) $3,172,024
B) $4,947,196
C) $7,887,259
D) $6,425,583

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions