Question

You are a manager of the Sweatshirt department at Trends, a clothing manufacturer. Trends plan to produce 25,000 sweatshirts. The sweatshirts will be sold to stores for 16$ each. The cost of manufacturing and marketing each sweatshirt is 10$. How many sweatshirts need to be sold for the company to reach break-even point?

Answer 1

Answer: 25,000 sweatshirts

Sold in stores( markup) : $16

Raw expenses: $10

So you have to reach a break even point

10×25000= $250,000

16 × 25000= 400,000

Hence to break even they must sell at the very least half of their inventory.

Answer 2

1. 25,000 sweatshirts
2. Sold in stores( markup) : $16
3. Raw expenses: $10
4. So you have to reach a break even point
5. 10×25000= $250,000
6. 16 × 25000= 400,000
7. Hence to break even they must sell at the very least half of their inventory.