Question

A clothing store spends $15 for each sweatshirt it produces and has fixed

costs of $600. If the store makes 60 sweatshirts, how much should the store
charge for each sweatshirt in order to break even?

Answer 1

Answer:25$

Explanation:

Answer 2

The cost of each sweatshirt in order to break even is $25

Explanation:

Given as :

The amount that store spend on each sweatshirt = $15

The fixed cost for production = $600

The total number of sweatshirt that store makes = 60

Let The price of each sweatshirt = $A

Now, According to question

∵ each sweatshirt cost $15 , and number of shirt made is 60

∴ The money spend on making 60 shirts = $15 × 60

i.e The money spend on making 60 shirts = $900

Again

The fixed cost for production = $600

So,Total money spend on shirt making = fixed cost + price on making 60 shirts

i.e Total money spend on shirt making = $600 + $900

Or, Total money spend on shirt making = $1500

Again

The price of each sweatshirt =
`(\textrm total money spend on making shirt)/(\textrm number of shirts)`

Or, A =
`(1500)/(60)`

∴ Amount = $25

So, The cost of each sweatshirt = A = $25

Hence, The cost of each sweatshirt in order to break even is $25 . Answer