Joanne sells silk-screened T-shirts at community festivals and craft fairs. Her marginal cost to produce one T-shirt is $2.50. Her total cost to produce 80 T-shirts is $270, and she sells them for $7 each. a. Find the linear cost function for Joanne's T-shirt production. b. How many T-shirts must she produce and sell in order to break even? c. How many T-shirts must she produce and sell to make a profit of $800?
Added by Robert C.
Step 1
The fixed cost is the cost that does not change regardless of the number of T-shirts produced. In this case, the fixed cost is the total cost to produce 80 T-shirts, which is $270. The variable cost per unit is the additional cost incurred for each additional Show more…
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Sri K.
Joanne sells silk-screened T-shirts at community festivals and craft fairs. Her marginal cost to produce one T-shirt is $3.50. Her total cost to produce 40 T-shirts is $220, and she sells them for $8 each. a. Find the linear cost function for Joanne's T-shirt production. b. How many T-shirts must she produce and sell in order to break even? c. How many T-shirts must she produce and sell to make a profit of $700? a. The linear cost function is C(x) = 3.5x + 80. b. Joanne must produce and sell 18 T-shirts in order to break even. c. Joanne must produce and sell 174 T-shirts to make a profit of $700.
Eleni K.
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