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You have been asked to compute the break-even point for a new line of souvenir tee-shirts. The selling price will be $25 per shirt. The labour costs will be $5 per shirt. The administrative costs of operating the company are projected to be $60,000 annually as well as the sales and marketing expenses are $20,000 a year. In addition the cost of materials will be $10 per shirt. Explain what is the break-even quantity?
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