Background: Buzz Athletic Apparel annually sells 25,000 Georgia Tech branded cotton T-shirts through distributors who then sell the shirts for $18 to retailers like Dicks Sporting Goods who then sell them on to consumers for $30 each. Buzzs costs of goods are $6 per shirt and they are required to pay a licensing fee to Georgia Tech for $1 for every shirt that they sell via distributors. This fee is only charged on those shirts sold to the distributors. The distributors margins are 22%.

1. What is Buzz Athletic Apparels gross margin?