View Full Version : Cost function equation
wcmoore23
Apr 27, 2011, 09:41 AM
ASU bookstore is selling silk-screened T-shirts for the Thanksgiving Homecoming game. The setup fee is $150.00. The total cost to produce 100 T-shirts is $2000. The bookstore will sell the T-shirt for $25. How much is the bookstore paying for each shirt? The bookstore wants to produce 600 T-shirts. Should the bookstore produce the shirts?
Unknown008
Apr 27, 2011, 10:13 AM
1) The bookstore pays $2000 for 100 T-shirts...
1 T-shirt = $ ?
2) Work out the cost of producing 600 T-Shirts.
Then work out the total money it will get by selling the T-Shirts.
Deduce the setup fee and find the profit.
If the profit is positive, then the shop should go for it. Otherwise... not.
What do you get? :)
jaziboo2
Nov 29, 2012, 08:53 AM
That does not help can you explain step by step