Question

A boutique sells t-shirts for $30. They pay $12.50 for each shirt and spend $740 for the right to sell the brand in their store. How many t-shirts do they have to sell to break even?

Answer 1

First let's find the profit for each t-shirt, by subtracting the selling price and the buying price:

$30-12.5=17.5$

So they have a profit of $17.5 per t-shirt sold.

Now, to find the number of t-shirts they have to sell to break even, we just need to divide the right cost of $740 by the profit value of one t-shirt:

$\frac{740}{17.5}=42.29$

So they need to sell approximately 43 t-shirts to break even.