Maddie Noticed That Many Students on Campus Had T-Shirts and Sweatshirts

question 2

Multiple Choice

Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. If Maddie sells a screened t-shirt for $15 each, what is the contribution margin for t-shirts?

• A) $7 a unit
• B) $9 a unit
• C) $13 a unit
• D) $15 a unit

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Definitions:

Gas Diffusion

The process by which gas molecules spread from areas of high concentration to areas of low concentration until equilibrium is reached.

Monocot Leaves

Leaves characteristic of monocotyledonous plants, typically exhibiting parallel veins that run the length of the leaf.

Palisade Layer

A layer of closely packed, vertically oriented cells found in the upper part of leaves, containing chloroplasts for efficient photosynthesis.

Petiole

The stalk attaching the leaf blade to the stem in plants, providing support and transporting nutrients and water between them.