Estelle is a budding entrepreneur who is using her skills to fundraise for Ukraine. Shes making custom T-shirts with entertaining designs (Puck Futin, Slava Ukraina, etc.) and selling them online. 50% of the profits will go towards humanitarian food relief, while the other 50% will go towards buying bulletproof armor to send to Ukrainian troops. That split isnt important to this problem, but I figured Id let you know where money will go

Anyhow, Estelle first prices the shirts for $20 each, and sells 4,000 shirts. Based on her earlier experience (she produced similar fundraising shirts to donate to BLM and Earth Justice) she knows that each time she lowers the price by 15 cents, shell sell 40 more shirts, and commensurately lose sales if she raises the price.

Each shirt costs her $4 for the blank, $1 for the custom printing, $3 in labor, and $4 for shipping. Her fixed costs for website startup are $20,000.

Please make a simple model showing how your choice of price affects your profit

Question 1: Use your model to show the expected profit if she keeps the price at $20. What is that profit?