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What Is the Breakeven Point for Rough and Tough Clothiers

Question 10

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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