The Lakewood baseball team is selling T-shirts for a fundraiser. The shirts cost $100 for the printing design and setup, plus $10 per shirt. The team is going to sell the shirts for $15 each. How many shirts do they need to sell to break even?(1 point)

shirts..

1 answer

To determine how many shirts the Lakewood baseball team needs to sell to break even, we can set up an equation based on their costs and revenues.

  1. Costs:

    • Fixed cost: $100 (printing design and setup)
    • Variable cost: $10 per shirt

    Therefore, the total cost \( C \) to produce \( x \) shirts is: \[ C = 100 + 10x \]

  2. Revenue:

    • Selling price per shirt: $15

    Thus, the total revenue \( R \) from selling \( x \) shirts is: \[ R = 15x \]

  3. Break-even point: The break-even point occurs when total revenue equals total costs: \[ R = C \] Substituting in the equations we derived: \[ 15x = 100 + 10x \]

  4. Solving for \( x \): Rearranging the equation gives: \[ 15x - 10x = 100 \] \[ 5x = 100 \] \[ x = 20 \]

Thus, the Lakewood baseball team needs to sell 20 shirts to break even.