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1 - 13 - 1 . 14 . 1 - 15 . 1 . 16. help the city council and city manager approach this decision?

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1 - 13 - 1 . 14 . 1 - 15 . 1 . 16. help the city council and city manager approach this decision? What kind of follow-up would you do, and why? ( 5 marks) Task 3: Terrific T-Shirts Ltd is a company that specializes in online t-shirt retailing. The company's unique selling point is its creative and quirky designs. Anyone in the world can submit a design and if it is popular enough (i.e., gets enough votes) Terrific T-Shirts Ltd will produce and market the t-shirt on its well-known website. The designer of each t-shirt is guaranteed a fixed percentage of each sale in return for their successful design work. Each t-shirt sells for $30 each. Designers get $5 from each sale of each t-shirt that they have designed. So popular is the site, the company's most successful t-shirt designers are able to make a living just by creating new designs for Terrific T-Shirts. The company expects to produce and sell 100 000 t-shirts this year, although there is a total production capacity of 110 000 in the current factory setup. Fixed costs are $400 000 per year. The direct costs of production are $24.50 per t-shirt (this includes $5 paid to the designers, the purchase of 'unfinished' t-shirts from a Chinese supplier, factory floor staff, dies, paints, postage, etc.). Olivia Chrisp, the Operations Manager is examining a proposal put forward by the company's CEO to buy in a new automated screen printing machine that links with new design software. This would enable a new design and manufacturing process capable of producing very large runs of custom designs. The quality would be very much improved

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