A store sells t-shirts. The average selling price is $15 and the average variable cost (cost price) is $9. Thus, every time the store sells a shirt it has $6 remaining after it pays the manufacturer. This $6 is referred to as the unit contribution. a.Suppose the fixed costs of operating the store (its operating expenses) are $100,000 per year. Find Break-even in units? b. If the owner desired a profit of $25,000, what will be break-even point in dollars? c.If fixed costs rose to $110,000, break-even in units volume would be? d.If the average selling price rose to $16, break even volume would fall?

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Solution Selling Price per unit Rs15 per unit Variable cos... View the full answer