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Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 5:2:2 mix (thus, a batch of
Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 5:2:2 mix (thus, a batch of 9 towels has 5 bath towels, 2 hand towels, and 2 washcloths). Each bath towel sells for $11 and costs $5, each hand towel sells for $7 and costs $4; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $327,000, and the income tax rate, t, is 20%. How many bath towe/s must the firm sell at the breakeven point? (Round per-unlt amounts to 2 declmal places; round other Intermedlate calculations to nearest whole dollars.) Multiple Choice 49,956. 86,956. 41,956. 56,956. 25,956
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