Question

The senior class is making T-shirts as a fundraiser. The material needed to make each T-shirt costs $3.75. The students sell each shirt for $10.To increase sales, the students spend $350 on advertising. How many t-shirts must the students sell to breakeven?

Answer 1

the number of t-shirts sold to breakeven is 56 t-shirts

Explanation:

The computation of the number of t-shirts sold to breakeven is shown below:

= Fixed cost ÷ (Selling price - cost price)

= $350 ÷ ($10 - $3.75)

= $350 ÷ 6.25

= 56 t-shirts

Hence, the number of t-shirts sold to breakeven is 56 t-shirts