Question

Graphic Wear Inc. designs and sells a variety of t-shirts for $19.75 each, and their revenue equation is =19.75, where q is the number of t-shirts sold. They have an expense equation of =11.25+83,300. How many t-shirts do they have to sell in order to breakeven? *

2,700
8,600
9,800
11,100

Answer 1

9,800

Explanation:

The breakeven point is when the revenue and the expense functions are equal.

Mathematically,

`R = E`

Applying to this question

`19.75q = 11.25q + 83300`

`8.5q = 83300`

`q = (83300)/(8.5)`

`q = 9800`

So the correct answer is:

9,800