Question

The student council at Oxford High School is making T-shirts to sell for a fundraiser, at a price of $12 apiece. The costs, meanwhile, are $10 per shirt, plus a setup fee of $130. Selling a certain number of shirts will allow the student council to cover their costs. How many shirts must be sold? What will the costs be?

Answer 1

• Number of shirts to breakeven = 65 shirts
• Cost of breakeven shirts = $650

Explanation:

First find the profit they will make from each shirt:

= Selling price - Cost price

= 12 - 10

= $2

They need to cover the cost of setting up which is $130. The number of shirts to sell given a profit of $2 from each shirt is:

= 130 / 2

=65 shirts

Cost of selling 65 shirts:

= 65 * 10 per shirt

= $650