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ASU bookstore is selling silk-screened T-shirts for the Thanksgiving Homecoming game.  The setup fee is \$150.00.  The total cost to produce 100 T-shirts is \$2000. The bookstore will sell the T-shirt for \$25. How much is the bookstore paying for each shirt? The bookstore wants to produce 600 T-shirts.  Should the bookstore produce the shirts?

Cost = \$150 + (\$2000/100)x, where x is the number of T-Shirts produced

The cost for 600 shirts would be \$150 + (\$20)(600) = \$12,150

The average cost of each shirt = \$12,150/600 = \$20.25

At a selling price of \$25 per shirt, the bookstore needs to sell \$12,150/\$25 = 486 shirts to break even.

So if the book store thinks it can sell at least 486 of the 600 shirts, then it should go ahead and produce the shirts.

the cost for 600 shirts would be

100 shirts cost \$2000 including the set up fee being \$150

so \$2000 - \$150 = \$1850 for 100 shirts

\$1850 / 100 = \$18.50 would be the cost per shirt

\$18.50 x 600 shirts = 11,100 + \$150 = \$11, 250 total cost for 600 shirts

600 shirts sold @ \$25 each = \$15,000

\$15,000 - \$11, 250 for cost of shirts = \$3,750 profit

To break even the store would have to sell 450 shirts