Set up fee 150.00 the cost to produce 100 shirts is $2000.00 the shirts will sell for 25.00 . How much would it be for 600 shirts

Question

Asu bookstore is selling silk screened shirts for the homecoming game . The set up fee is $150.00 . The total cost to produce 100 t shirts is $2000.00 the bookstore will sell the shirts for 25.00 . How much is the bookstore paying for each shirt ? The bookstore wants to produce 600 t shirts . Should they produce the shirts

Answer 1

Hi Talon, set up an equation to find the profit from the 100 t-shirts.

 

Given:

 

Setup cost: $150.00

 

Production cost: $2000.00

 

Retail price: $25.00

 

Cost to produce the shirts:

 

C = 150 + 2000

 

C = 2150

 

Cost per shirt, 2150 / 100, or 21.50 dollars

 

Profit from 100 shirts:

 

P = 25 * 100

 

P = 2500

 

If the bookstore produced 100 t-shirts, there would be a profit of: 2500 - 2150, or 350 dollars.

 

To produce 600 t-shirts:

 

C = 150 + 600 * (2000 / 100)

 

C = 150 + 12000

 

C = 12250

 

Profit for 600 t-shirts

 

P = 600 * 25

 

P = 15000

If the bookstore produced 600 t-shirts, there would be a profit of: 15000 - 12150, or 2850 dollars.

 

Questions?