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Your t-shirt company currently uses a manual printing system to put designs on blank shirts (all equipment is paid for). The cost of goods sold is $8 and the retail price for the shirts is $25. You currently print 11,000 shirts/year with this equipment and that is the maximum capacity. You are considering investing in new equipment. You came across a semi-automated printing system for $30,000, plus you'll need to spend $5,000 for the electrician to update wiring and connect the equipment. To break even in one year, how many (total) shirts would you need to print next year?

Your t-shirt company currently uses a manual printing system to put designs on blank shirts (all equipment is paid for). The cost of goods sold is $8 and the retail price for the shirts is $25. You currently print 11,000 shirts/year with this equipment and that is the maximum capacity. You are considering investing in new equipment. You came across a semi-automated printing system for $30,000, plus you'll need to spend $5,000 for the electrician to update wiring and connect the equipment. To break even in one year, how many (total) shirts would you need to print next year?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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5) Your t-shirt company currently uses a manual printing system to put designs on blank shirts (all equipment is paid for). The cost of goods sold is $8 and the retail price for the shirts is $25. You currently print 11,000 shirts/year with this equipment and that is the maximum capacity. You are considering investing in new equipment. You came across a semi-automated printing system for $30,000, plus you'll need to spend $5,000 for the electrician to update wiring and connect the equipment. To break even in one year, how many (total) shirts would you need to print next year?
Transcribed Image Text:5) Your t-shirt company currently uses a manual printing system to put designs on blank shirts (all equipment is paid for). The cost of goods sold is $8 and the retail price for the shirts is $25. You currently print 11,000 shirts/year with this equipment and that is the maximum capacity. You are considering investing in new equipment. You came across a semi-automated printing system for $30,000, plus you'll need to spend $5,000 for the electrician to update wiring and connect the equipment. To break even in one year, how many (total) shirts would you need to print next year?
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