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.

a.

$6,425,583

b.

$7,887,259

c.

$4,947,196

d.

$3,172,023

Clear my choice