Tony's beach t-shirts has fixed annual operating costs of $75,000. tony retails his t-shirts for $14.99 each and the variable cost per t-shirt is $4.99. based on this information, the breakeven sales level in dollars is __

$112.425

Explanation:

breakeven is

first we need to understand the concept of breakeven:

breakeven in sales makes reference to the amount of revenue in dollars at which a company has a profit of zero ($0.00). covering the underlying fixed expenses of a busines

with this concept we have that :

Total Costs   = fixed annual operating cost + variable cost + sold units

Revenue = Total Costs

14.99 * sold units = 75,000 + 4.99 * units

10 * sold units = 75,000

breakeven  = 7,500  units

now we can have the breakeven in dollars doing the convertion

breakeven = breakeven in units * prices

breakeven= 7,500 units * $14.99/unit  

breakeven = $112,425

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