For this assignment, you have another brilliant idea that you want to propose to your boss. You want to sell t-shirts on the company intranet site to employees to make more money. The t-shirts can be purchased by employees for themselves, family members, suppliers, or customers. You have found a vendor that can supply you the t-shirts, with the company logo for $5.00 per t-shirt.

Working with the attached Excel spreadsheet, you are to determine the number of units you need to sell, and the dollar value required to break even with this new venture.

Once you have calculated the break-even and contribution margin, you are to submit a memo to your boss and include the following:

Introduction

• Should include the proposal you are introducing to your boss.

Break-Even Analysis

• Why is break-even analysis used?
• How many units do you need to sell to break even?
• What is the contribution to the company for each t-shirt that is sold?
• How much revenue do you need to break even?

Conclusion

• Overall, would you recommend this new venture to your boss? If so, why? If not, why? Based on the results, do you think your boss would approve this new venture?