You Have Been Asked to Calculate the Break-Even Point for a New

Multiple Choice

You have been asked to calculate the break-even point for a new line of T-shirts. The selling price will be $25 per shirt. The labor cost is $5 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year. Additionally, the cost of materials will be $10 per shirt. What is the break-even quantity?

A) 2,000 shirts
B) 3,200 shirts
C) 5,334 shirts
D) 8,000 shirts
E) 16,000 shirts