Tag manufacturers clothing price tags. It plans to manufacture 30, 000, 000 tags to be sold to garment factories and clothing stores at $0.005 each. The fixed costs are estimated to be $124, 500. Variable costs are $0.0005 per unit. To the nearest whole number, how many tags must be sold for Tag to beak even?

BUSINESS MATHEMATICS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Tag manufacturer’s clothing price tags. It plans to manufacture 30, 000, 000 tags to be sold to garment factories and clothing stores at $0.005 each. The fixed costs are estimated to be $124, 500. Variable costs are $0.0005 per unit. To the nearest whole number, how many tags must be sold for Tag to beak even?

A	15, 000
B	22, 636, 364
C	24, 900, 000
D	27, 666, 667

Explanation:

Detailed explanation-1: -CMT charges are calculated as: Cutting cost = (SAM of cutting * Minute cost of the labour) / cutting efficiency (percent) = 7*0.480/50 =0.134 dollars. Production cost of garment (CMT) = sewing cost + cutting cost + trimming cost = 0.288+0.134+0.06 = 0.482 dollars.

Detailed explanation-2: -You can calculate CMT by multiplying the total cost per hour to the total number of hours it takes to make the style, divided by the number of units produced. The contractor’s profit is also added to this cost.

Detailed explanation-3: -Garment production wages range from approximately $6-$12 per garment. Shipping costs per item work out at between $1.50 & $3 per garment. Duties + taxes add another $1.50-$3 per garment. Total Production cost = $14-$28 per garment.

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