Question
What is the breakeven point, in dollars, for Zippy Dippy Swimwear, maker of bathing suits and accessories? It has the following costs: Raw materials: $25
What is the breakeven point, in dollars, for Zippy Dippy Swimwear, maker of bathing suits and accessories? It has the following costs: Raw materials: $25 per bathing suit $ 8 per towel $16 per beach umbrella $37 per swimsuit cover-up Labor costs: $18 average per suit $10 per umbrella $ 3 per towel $20 per cover-up Commissions: $12 per item Utilities: $150,000 Rent: $196,000 Taxes: $230,000 Salaries: $550,000 The price of each suit is $85. The price of each towel is $25. The price of each umbrella is $40. The price of each cover-up is $81.
Answer a. $4,947,196
b. $7,887,259
c. $3,172,023
d. $6,425,583
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