Benny and Frieda Are Art Students Who Often Received Compliments

question 177

Essay

Benny and Frieda are art students who often received compliments on the t-shirts they designed and made themselves. In need of funds for fall semester, they decide to sell these t-shirts at a small stand at the South Haven Beach during the summer. Rent on the beach stand is $1,600 per month. Variable costs per t-shirt are $4.75.
A. Complete the following table which estimates total costs and cost per t-shirt at the indicated levels of activity for this t-shirt stand. Round the costs per t-shirt to two decimal places. $$\begin{array} { | l | c | c | c | } \hline & & { \text { Number of } \mathrm { t } \text {-shirts sold in one month } } \\\hline & 1,000 & 1,500 & 2,000 \\\hline \text { Total fixed cost } & & & \\\hline \text { Total variable cost } & & & \\\hline \text { Total cost } & & & \\\hline \text { Cost per t-shirt sold } & & & \\\hline\end{array}$$
B. Benny and Frieda need to each earn $5,000 before the fall term starts. They plan to sell the t-shirts for $15.
1. Will they be able to meet their goal? Support your comments with computations.
2. What other factors might affect this business venture?