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Julie makes and sells shirts for children and adults. She sells the shirts for $20 per unit. Material for
the shirts cost $6 each. She has fixed costs per month of $420 and estimates that she can make
and sell 80 shirts each month. How many shirts does Julie need to sell to break even?​

Respuesta :

Answer:

Julie need to sell at least 45 shirts to break even.

Step-by-step explanation:

The  selling cost of each shirt = $ 20

Cost of each shirt = $6

The fixed cost per month = $420

Number of shirts she can make = 80

Hence, the cost of making 80 shirts =  80 x $6  = $480

So, her total capital investment of the month

= Cost of shirts made + Fixed cost = $420 + $480 = $900

Now, let us assume she sell k number of shirts.

⇒ $20 x k  = $900

or, k = 900 / 20 = 45

or, k = 45

Hence, Julie need to sell at least 45 shirts to break even.

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