1. Hasan Omar, owner of Sports T-Shirt Manufacturing, is considering whether to produce a new line of T-Shirts. Hasan has considered the processing needs for the new product as wel... 1. Hasan Omar, owner of Sports T-Shirt Manufacturing, is considering whether to produce a new line of T-Shirts. Hasan has considered the processing needs for the new product as well as the market potential. He has also estimated that the variable cost for each product manufactured and sold is LE100 and the fixed cost per year is LE1,000,000. a. If Hasan offers the T-Shirt at a selling price of LE300, how many shirts must he sell to break even? b. If Hasan sells 6000 shirts at the LE300 price, what will be the contribution to profit? 2. Classify the steel types according to three different categories. 3. Cemented carbide is widely used as tool and die material. Give the following for cemented carbides. a. Definition of the material. b. List the main properties for employing the materials in metal-forming applications and their typical applications in this category.
Understand the Problem
The question consists of multiple parts related to a T-shirt manufacturing scenario, requiring calculations to determine break-even sales and contributions to profit, as well as classifications and definitions related to materials and properties in engineering.
Answer
Break-even: 5000 shirts. Profit contribution: LE1,200,000.
a. Break-even point is 5000 shirts. b. Contribution to profit is LE1,200,000.
Answer for screen readers
a. Break-even point is 5000 shirts. b. Contribution to profit is LE1,200,000.
More Information
Achieving the break-even point means there is no profit or loss. The profit from selling 6000 shirts is calculated by the difference between the selling price and variable cost multiplied by the quantity.
Tips
A common mistake is forgetting to subtract the variable cost from the selling price when calculating the break-even point. Ensure all units are consistent.
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