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Jenn is working on a custom t-shirt company. She expects to sell approximately 400 t-shirts her first year of business. Jenn is trying to determine
Jenn is working on a custom t-shirt company. She expects to sell approximately 400 t-shirts her first year of business. Jenn is trying to determine if she should purchase the shirts from another company and simply resell them or purchase the equipment to make them herself. The equipment will cost her $4,800 to purchase, but each shirt will only cost $5.25. To purchase the shirts from another company would require a one time fee of $425, but each shirt would cost $14.00 to purchase. Use this information to answer the following questions. What is the break-even quantity? a. b. What is the cost at the break-even quantity? C. Given the annual demand should Jenn make or buy the shirts
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