Problem
i. A custom graphic T-shirt company sells T-shirts for $10.35 each. Variable costs are $2.50 per T-shirt up to 1,116 units and then decreases to $2.00 per T-shirt. Fixed costs are $46,514. What is the revenue required for the company to breakeven?
ii. A furniture retailer is considering two sales prices on his new sofa, which cost him $536 from the distributor. The first sales price would be calculated with a 18% margin. The second sales price would be calculated using a 18% markup on cost. After trying both methods, the retailer went with the sales price that returned the highest profit. What was that sales price?