Billys Thrift Shop

Fill in the missing information in the table from the information below

For the month of July, Billy sold 3,000 t-shirts at $10 each.

He paid $5 for each t-shirt and $.80 per shirt for personalizing art materials.

He pays $180 a month on his loan for a t-shirt printing machine.

His monthly Internet/phone bill is $55

Selling price
Operating expenses per month
Costs of goods sold (per unit)
Gross margin (per unit)

A) What is the break-even point?

Since Billy wants to go on vacation in September, he introduces his new Fall t-shirt collection in August.

Billy sold 2,100 t-shirts at $12 each.

He paid $7.5 for each t-shirt and $.80 per shirt for personalizing art materials.

He pays $180 a month on his loan for a t-shirt printing machine.

His monthly Internet/phone bill is $55

Hired an Assistant: $20/ hour

Assistant worked 20 hours per week

Soon after launch, he realizes that his new collection introduction was ill-timed, since it reduced the summer collections period on the market, and many of his consumers are purchasing the new Fall clothing instead of the Summer collection. He calculated that his Summer collection sales are 20% lower than last year for the month of August (he only sold 1,500 units).

B) How much profit (or loss) is Billy expected to make for August for the Fall collection (note: dont forget about cannibalization cost)?