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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

Benny and Frieda Are Art Students Who Often Received Compliments