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Shirt Circuit Graphic Tees has fixed expenses of $25,560 for the production of their
t-shirts. They have a variable expense of $4.50 for each t-shirt that they
produce, and they sell their t-shirts for $22.50 each.
How many t-shirts does Shirt Circuit Graphic Tees have to sell to reach their
breakeven point?

Respuesta :

Answer:

Step-by-step explanation:

Cost price = fixed expenses + variable expenses× number of products (x)

Selling price = total cost price + profit

At break even point,

Profit = 0

Therefore, total selling price = total cost price

X(22.50)= 25560 + x(4.50)

(22.50 - 4.50)x = 25560

18x= 25560

X = 1420

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