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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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