If Atrium can sell 10000 tee-shirts from its Web page whats the break-even price?

Atrium a manufacturer of upscale designer tee-shirts is considering launching an Internet operatio Show more Atrium a manufacturer of upscale designer tee-shirts is considering launching an Internet operation to sell its product direct to consumers in addition to distributing through traditional bricks-and-mortar retail stores. Management believes an Internet presence should augment its retail operation. Atrium tee-shirts made of 100% refined woven cotton feature batik prints. The cost of producing an Atrium designer tee-shirt is $6.50 per shirt. Internet: In selling tee-shirts on the Web the company must hire a Web page architect to design the page and maintain it over the course of a year. The salary for a Web page architect is $60000 including expenses and benefits. Shipping on Internet orders which is to be included in the retail price of the tee-shirts is estimated to be $4.20 per shirt. Retail store distribution: A retail chain has proposed to carry Atrium tee-shirts for a year in exchange for a 35% dealer margin. Additional in-store promotion and a local print advertising campaign for a year will cost Atrium $80000. Based on the above information answer the following questions. Please Show Your Calculations. 1a. If Atrium can sell 10000 tee-shirts from its Web page whats the break-even price? 1b. If Atrium tee-shirts sell for $32 at the retail stores how many tee-shirts must Atrium sell to break even? Show less

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