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Question at position 9 Annie is a T-shirt designer and has two options when it comes to her designs. She either makes short sleeve shirts where her fixed costs are $3000 and her variable costs per unit are 15.3 or she makes long sleeve shirts where her fixed costs are $2500 and her variable costs are $32. She is overworked and exhausted from keeping track of who ordered what T-shirts and wants to research which shirt will make the most sense to produce and how many of them. At what quantity will make it indifferent if Annie produces long sleeve or short sleeve shirts? (round all answers to the nearest whole number)Annie is a T-shirt designer and has two options when it comes to her designs. She either makes short sleeve shirts where her fixed costs are $3000 and her variable costs per unit are 15.3 or she makes long sleeve shirts where her fixed costs are $2500 and her variable costs are $32. She is overworked and exhausted from keeping track of who ordered what T-shirts and wants to research which shirt will make the most sense to produce and how many of them. At what quantity will make it indifferent if Annie produces long sleeve or short sleeve shirts? (round all answers to the nearest whole number)[input]
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The problem asks at what production quantity the two options become financially indifferent, meaning their total costs are equal.
First, write the total cost equations for each shirt type.
- Short sleeve: Fixed cost = 3000, variable cost per unit = 15.3, so total cost is TC_short =......Login to view full explanationLog in for full answers
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