Benny and Frieda are art students who often received compliments on the t-shirts they designed and made themselves. In need of funds for fall semester, they decide to sell these t-shirts at a small stand at the South Haven Beach during the summer. Rent on the beach stand is $1,600 per month. Variable costs per t-shirt are $4.75.
A. Complete the following table which estimates total costs and cost per t-shirt at the indicated levels of activity for this t-shirt stand. Round the costs per t-shirt to two decimal places.
B. Benny and Frieda need to each earn $5,000 before the fall term starts. They plan to sell the t-shirts for $15.
1. At which level of activity will they be able to meet their goal? Support your comments with computations.