Question

Refer to the example above. If the costs of the T-shirt company change to the given values and the selling price remains the same, determine the number of T-shirts the company must sell in order for income to equal expenses. 1. printing machine: $5000.00; 2. printing machine: $2100.00; T-shirt: $10.00 each T-shirt: $8.00 each 3. printing machine: $8800.00; 4. printing machine: $1200.00; T-shirt: $4.00 each T-shirt: $12.00 each

Answer 1

The company must sell 500 T-shirts in order for income to equal expenses.

Step-by-step explanation:

To determine the number of T-shirts the company must sell in order for income to equal expenses, we need to consider the costs of the printing machine and the T-shirts. Let's go through each given set of values:

1. printing machine: $5000.00; T-shirt: $10.00 each

Expenses: $5000.00 (printing machine) + ($10.00 x number of T-shirts)

Income: $10.00 x number of T-shirts

To break even, income must equal expenses, so we can set up the equation:

$10.00 x number of T-shirts = $5000.00 + ($10.00 x number of T-shirts)

When we solve the equation, we find that the number of T-shirts the company must sell is 500.