Develop model to represent the total profit for selling

Assignment Help Operation Management

Reference no: EM131040623

1) A local restaurant owner is considering designing and selling logo t-shirts to his customers. The restaurant owner believes he can sell the t-shirts for $20 each. He has done some research into local printing and design companies and decides on a company that has the following costs: fixed cost of $3,000 to produce/design the shirts, plus $6 per shirt.

Let x = number of t-shirts sold.

a) Develop a model to represent the total profit for selling x t-shirts.

b) Calculate the profit if 100 t-shirts are sold. Is this a gain or loss?

c) How many t-shirts will the restaurant have to sell to break-even? (Round to the nearest whole number.)

d) What is your recommendation to the restaurant if the owner believes he can sell approximately ten t-shirts a week? Should he go through with the project? Why or why not?

Reference no: EM131040623

Questions Cloud

Determine the total expenses : Kara's custom tees experienced fixed costs of $200 and variable costs of $5 a shirt. Write an equation that can be used to determine the total expenses encountered by Kara's Custom Tees.

Make the rental cost for company a : A truck can be rented from Company A for $140 a day plus $.20 per mile. Company B charges $80 a day plus $0.70 per mile to rent the same truck. How many miles must be driven in a day to make the rental cost for Company A a better deal than Company..

Compare acute myocardial infarction vs angina : Mr Taylor continues to complain of chest tightness. He reported "My doctor told me that I have angina and I had chest pains before but how come this is worse? I have never sweated like this in my life. I am also feeling sick in the stomach, Compar..

Find a linear demand equation : Find a linear demand equation that shows the number of swords q that can be sold per week, if the price per sword is p dollars. You experimented with the prices, and found that if you charge $500 for a sword, then you can sell 75 swords per week;

Develop model to represent the total profit for selling : A local restaurant owner is considering designing and selling logo t-shirts to his customers. The restaurant owner believes he can sell the t-shirts for $20 each. Develop a model to represent the total profit for selling x t-shirts. Calculate the pro..

Element method for proving a set equals : Use the element method for proving a set equals the empty set to

Was johnson''s pre-shift work preliminary : Has Fulma engaged in unfair labor practices in its response to the union organizing activity?

Determine the max profit in dollars : Determine the number of luxury cars that must be produced and sold to obtain the max profit Determine the max profit in dollars

Diligence study before committing a lot of money and staff : Our senior management staff has just announced our company is going increase our presence in the world market by placing a new facility in the country of Spain. As a stock holder what type of information would you hope the senior staff performed duri..

User Account

All Pages