Mr. Hewson is considering opening up a store in Tinley Park, IL that will strictly sell t-shirts of various music groups. He has hired your business consulting group of SummitHillJunior High School students to help him decide whether he should enter into the t-shirt industry.

Mr. Hewson has received bids from two different t-shirt manufacturing companies, The Frankfort T-Shirt Factory Co. and Creative T-Shirts Inc. The Frankfort T-Shirt Company has told Mr. Hewson that they will sell each t-shirt according to the per-unit cost break down as follows:

Selling Price Breakdown per unit:

Plain T-Shirt\$3.70

Lettering\$1.65

Labor\$1.15

Creative T-Shirts Inc. has offered to sell Mr. Hewson t-shirts in bulk orders. They told him that they will sell him boxes of 300 t-shirts at \$2,000.00 per box.

Mr. Hewson has found retail store space on Harlem Ave. and 191st Street. At this location he will have to pay \$2,300.00 per month for rent. He will also have to pay a \$550 royalty fee per month for the right to sell t-shirts with logos of music groups and band logos. Additional monthly costs also include \$385 for electricity and gas, \$50 for water, and \$65 for office supplies. Furthermore, payroll expenses will be exactly \$2,400 a month.

Mr. Hewson plans on selling his t-shirts at a retail price of \$18.00 each. In order to make his decision on whether to go into business selling t-shirts, Mr. Hewson will need to know how many t-shirts he will have to sell to break even. In order for the business to be worthwhile, Mr. Hewson additionally would like to make a profit of \$7,500 per month. How many t-shirts will he need to sell to make this profit?

Directions:

Mr. Hewson needs your help as business consultants. It is your job to determine which manufacturing company would be the least expensive to buy from. After choosing the least expensive manufacturer, construct two algebraic equations to find the amount of t-shirts Mr. Hewson will need to sell to break even and to make a \$7,500 monthly profit.