1. Calculate the break-even point for a new line of shirts. Selling price will be $48 per shirt. Labor costs will be $12 per shirt. Administrative costs allocated to the shirt line are estimated to be $80,000 annually and the sales and marketing expenses are $40,000 a year for the shirt line. Cost of materials will be $20 per shirt. What is the break-even quantity? The break-even quantity lies in the range:

- more than 8,000 shirts.

- *6,001 to 8,000 shirts.

- 3,500 to 6,000 shirts.

- fewer than 3,500 shirts.