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?