25 May WHICH LOGO PACKAGE WOULD YOU RECOMMEND IF PETE EXPECTS TO SELL 75 SHIRTS? 200 SHIRTS?
Pete Patel is the sports liaison for the student government association. During the fall semester, the group promotes school spirit with “orange effect” t-shirts. The shirts feature a special screen-printed logo that can be expensive to make. Pete’s supplier, Classic Tees, has quoted three prices for the shirts with differing logo packages, as shown below. A) If the t-shirts are sold for $6 each, how many shirts would have to be sold to break even with Package l? B) Pete is considering selling the shirts for $8 each. What is the break-even point for Packages 1 and 2 with an $8 price?C) Which logo package would you recommend if Pete expects to sell 75 shirts? 200 shirts?D) Assuming the shirts would be sold at the same price regard- less of the logo package, create a decision rule for Pete to use based on anticipated sales volume.Package Cost of Logo Cost per shirt1 $300 $42 $100 $63 0 $8
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