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Tommy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of
Tommy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $30 and costs $24, each hand towel sells for $25 and costs $22; and each washcloth sells for $22.50 and costs $21. The shop's annual fixed expenses are $504,000, and the income tax rate, t, is 40%. How many bath towels must the firm sell at the breakeven point? (Round per-unit amounts to 2 decimal places.) 40,000. 56,000. 64,000. 71,000
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