To determine the number of T-shirts Pam must sell for her sales to equal her expenses, we can set up an equation based on her costs and revenues.
Expenses:
Pam has fixed costs from the screen-printing tools and variable costs per shirt:
- Fixed costs (tools) = $504
- Variable cost per shirt = $4.50
So, her total expense for selling \( s \) shirts can be expressed as: \[ \text{Total Expenses} = 504 + 4.50s \]
Revenue:
Pam's revenue from selling \( s \) shirts at $15 each is: \[ \text{Total Revenue} = 15s \]
Setting the equation:
To find the number of shirts \( s \) that Pam must sell for her sales to equal her expenses, we set up the equation: \[ 15s = 504 + 4.50s \]
Solving the equation:
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Subtract \( 4.50s \) from both sides: \[ 15s - 4.50s = 504 \] \[ 10.50s = 504 \]
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Divide both sides by \( 10.50 \): \[ s = \frac{504}{10.50} \] \[ s = 48 \]
Conclusion:
Pam must sell 48 T-shirts for her sales to equal her expenses.