The student council at Greenwood High School is selling T-shirts for $20 apiece. Their costs are $5 per shirt, plus $45 for supplies. Selling a certain number of shirts will allow the student council to cover their costs. How many shirts do they need to sell to break even? How much in costs will they have incurred at that point?The student council needs to sell T-shirts to break even. At that point, they will have incurred $ in costs and collected the same amount in sales.Submit
Question
The student council at Greenwood High School is selling T-shirts for 5 per shirt, plus in costs and collected the same amount in sales.Submit
Solution
The question is asking for the number of T-shirts the student council needs to sell to cover their costs and the total cost at that point.
Here's how to solve it:
Step 1: Determine the profit per shirt. This is the selling price minus the cost per shirt. In this case, it's 5 = $15.
Step 2: Determine the fixed costs. These are costs that don't change with the number of shirts sold. In this case, it's $45 for supplies.
Step 3: Divide the fixed costs by the profit per shirt to find out how many shirts need to be sold to cover the fixed costs. In this case, it's 15 = 3 shirts.
So, the student council needs to sell 3 shirts to break even. At that point, they will have incurred 15 in variable costs (3 shirts x 60 in costs. They will also have collected 20 per shirt).
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