select the correct answer from the drop - down menu. george runs an outlet where he sells personalized t…

select the correct answer from the drop - down menu. george runs an outlet where he sells personalized t - shirts. he spends $35 to rent the printing machine and $25 for phone service each month. if each t - shirt costs $5.80, and he sells them for $10, george will start making a profit after selling shirts in a month.

select the correct answer from the drop - down menu. george runs an outlet where he sells personalized t - shirts. he spends $35 to rent the printing machine and $25 for phone service each month. if each t - shirt costs $5.80, and he sells them for $10, george will start making a profit after selling shirts in a month.

Answer

Explanation:

Step1: Calculate total fixed - costs

The total fixed - costs are the sum of the printing machine rent and phone service cost. So, $35 + 25=60$.

Step2: Calculate profit per T - shirt

The profit per T - shirt is the selling price minus the cost price. So, $10−5.80 = 4.20$.

Step3: Calculate the number of T - shirts to break - even (start making profit)

Let the number of T - shirts be $n$. We want to find $n$ such that the total profit from selling $n$ T - shirts is greater than the total fixed costs. Using the formula $n=\frac{\text{Total Fixed Costs}}{\text{Profit per T - shirt}}$, we have $n=\frac{60}{4.20}=\frac{600}{42}=\frac{100}{7}\approx14.29$. Since we can't sell a fraction of a T - shirt, and we start making a profit when the profit exceeds the fixed costs, we need to sell 15 T - shirts.

Answer:

15