Illustrate what volume is necessary in order for riverview

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Reference no: EM1377437

Q. Alex also Amy, owners of Riverview Antiques also Souvenirs can buy a blank T-shirt of better material quality for $12.50.

a. If Alex also Amy can command a selling price of $25 for the better shirt also other costs remain as described I the example, illustrate what is the break-even volume?

b. If sales volume for the better quality shirt is 1,000 units during the season, illustrate what pre-tax profit will the organization realize on the T-shirt venture?

c. With the better quality shirt also $25 selling price, illustrate what volume is necessary in order for Riverview to earn a $7,000 profit on the shirt product line?

d. Are there any risks associated with the strategy of buying higher quality T-shirt also pricing the printed shirts at $25? Explain your response.

Reference no: EM1377437

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