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Stan Soper has a 600-square-foot T-shirt store in a good mall location. He has all colors and sizes plus hundreds of designs for heat-embossing onto

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Stan Soper has a 600-square-foot T-shirt store in a good mall location. He has all colors and sizes plus hundreds of designs for heat-embossing onto the shirts. Every shirt sells for $10. In his area, Stan estimates he has about a steady 12 percent share of a 100,000- units-per-year customized T-shirt market. Stan has found this to be a nonseasonal business. Sales hardly vary from one month to the next. Stan's costs are: Store lease $1,400 a month $4 each T-shirts Embossing decals Embossing equipment Store fixtures $.50 each $24,000 (10 yr lease at $200 per month) $14,400 (10 yr lease at $120 per month) $125 per month Telephone, postage, etc. Stan's advertising budget is $200 per month. He pays one store assistant $1,040 a month and draws a salary for himself of $1,300 a month. His waste (T-shirts spoiled by a poor or misapplied decal) runs around 2 percent of a T-shirt's variable cost. What is Stan's monthly break-even point? Group of answer choices 378 shirts 525 shirts 811 shirts 1,033 shirts None of the above 1 What is the unit contribution for the T-shirts? Group of answer choices $3.36 $4.50 $4.59 $5.41 None of the above

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