two Tech bookstores, 35% at the local bookstore, and 15% online. If the SGA sells the T-shirts for $6 and if it sells all the shirts it orders, will it make enough profit to achieve its financial goal? If not, at what price would the SGA need to sell the T-shirts, or how many would the SGA have to sell to achieve its financial goal?
two Tech bookstores, 35% at the local bookstore, and 15% online. If the SGA sells the T-shirts for $6 and if it sells all the shirts it orders, will it make enough profit to achieve its financial goal? If not, at what price would the SGA need to sell the T-shirts, or how many would the SGA have to sell to achieve its financial goal?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:The stadium seats 62,000 fans, and the SGA would like to sell approximately
45,000 orange T-shirts to achieve the desired orange effect, which it's
relatively confident it can do. It will cost$100,000to purchase, silk-screen
print, and ship this many T-shirts. The SGA sells the shirts through three
sources: online, the two Tech bookstores, and a local independent
bookstore. While the bookstores don't expect to share in the profits from the
sale of the shirts, they do expect for their direct costs to be covered,
including labor, space, and other costs. The two Tech bookstores charge the
SGA $0.35 per shirt, and the local independent store charges $0.50 per shirt.
The cost per sale online (including handling, packaging, and shipping) is
$2.30 per shirt. The SGA estimates that it will sell 50% of the shirts at the
two Tech bookstores, 35% at the local bookstore, and 15% online. If the SGA
sells the T-shirts for $6 and if it sells all the shirts it orders, will it make
enough profit to achieve its financial goal? If not, at what price would the
SGA need to sell the T-shirts, or how many would the SGA have to sell to
achieve its financial goal?
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