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.
-
Costs:
- Fixed cost: $100 (printing design and setup)
- Variable cost: $10 per shirt
Therefore, the total cost \( C \) to produce \( x \) shirts is: \[ C = 100 + 10x \]
-
Revenue:
- Selling price per shirt: $15
Thus, the total revenue \( R \) from selling \( x \) shirts is: \[ R = 15x \]
-
Break-even point: The break-even point occurs when total revenue equals total costs: \[ R = C \] Substituting in the equations we derived: \[ 15x = 100 + 10x \]
-
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.