Question

Joanne designs and sells t shirts through an online forum. she paid 80 dollars for general supplies. It costs her 2 dollars to make each t shirt. She charges 6 dollars per shirt. Determine how many t shirts Joanne needs to sell in order to break even.

Answer 1

20 shirts

Explanation:

We are told she paid 80 dollars for general supplies. It costs her 2 dollars to make each t shirt.

Total cost of production is;

80 + 2t

Where t is number of t-shirts.

We are told that She charges 6 dollars per shirt.

This means that total revenue from sales is; 6t

Now,in economics or business, break even point is the point where revenue and total cost are equal.

Thus, break even point will be at;

80 + 2t = 6t

6t - 2t = 80

4t = 80

t = 80/4

t = 20 shirts