What is the new break-even point

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Question - Currently, ABC Co. sells T-shirts for $20/ shirt. The marginal cost of production is currently is $9/ shirt with fixed costs set at $1,500/ year. The tax rate is 20%. What is the new break-even point if sales price and fixed costs are both reduced by 15%?

a. 159 T-shirts

b. 175 T-shirts

c. 277 T-shirts

d. 125 T-shirts

Reference no: EM132686473

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