You are interested in establishing a business selling T-shirts. You purchase a screen printing machine which costs $5,450. The cost for materials and processing is $6.50 per shirt, and you can sell the shirts for $12 each.
(a) What is your net profit or loss if you sell 450 shirts? Make sure to clearly indicate whether you will have a net profit or a net loss in addition to stating the amount.
(b) How many shirts do you have to sell to break even?
(c) How many shirts would you need to sell to make a profit of $10,000?
(d) If the selling price for T-shirts changes to $15, what is the new breakeven volume