julie makes and sells shirts for children and adults she sells yhe shirts for $20 per unit. material for shirt cost $6 each she has fixed costs per month of $420 and esimates that she can make and sell 80 shirts each month how many shirts does julie need to sell to break even
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Answer:
She needs to sell 45 shirts to break even.
Step-by-step explanation:
Given,
Fixed cost = $ 420,
Material cost for one shirt = $ 6,
So, the Material cost for 80 shirts = $ 480,
Thus, the total expenditure = 420 + 480 = $ 900,
Now, the selling cost of one shirt = $20,
Suppose x shirts were sold,
So, total revenue = selling price of one shirt × number of shirts
= 20x,
For break even,
Total revenue = Total expenditure,
⇒ 20x = 900
Dividing both sides by 20,
x = 45,
Therefore, She needs to sell 45 shirts to break even.
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