Question

A student makes and sells designer T-shirts to earn extra cash. The material needed to make each T-shirt costs $4.25. Currently, the student sells each designer T-shirt for $15. In an effort to increase sales, the student decides to spend $500 on promotional advertising. How many designer T-shirts must the student sell to break even? A. 26 B. 34 C. 46 D. 47

Answer 1

Explanation:

Let x be the number of designer T shirts.

To break even,

Total Cost = Total Sales

Fixed Cost + Variable Cost = Total Sales

given the promotional advertising is classified under fixed cost,

`500 + 4.25x = 15x \\ 15x = 500 + 4.25x \\ 15x - 4.25x = 500 \\ 10.75x = 500 \\ x = 500 / 10.75 \\ = 46.5 \\ = 47 \: (round \: off \: to \: nearest \: whole \: number)`