Question
The sorority sisters of Kappa-Delta decide to raise money by selling t-shirts at a table on campus. It costs them $560 to stock 200 t-shirts
The sorority sisters of Kappa-Delta decide to raise money by selling t-shirts at a table on campus. It costs them $560 to stock 200 t-shirts and $420 to stock 100 t-shirts.They decide to charge $5 for every t-shirt they sell.
What is the marginal cost for each t-shirt?
The sorority also have set up costs that they need to pay like the renting of the table, printing posters and renting space from the university.What are the fixed costs to set up the table?
How many t-shirts do the sorority sisters have to sell in order to break even?
What is the profit if they sell 400 t-shirts?
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