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Tray Has a T-Shirt Business That Buys Shirts from a Wholesaler

Question 39

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Tray has a T-shirt business that buys shirts from a wholesaler for four dollars each and sells them to retailers for eight dollars each. He imprints each shirt with a picture of a musical artist that costs him two dollars. He also pays his cousin to do the printing at five dollars an hour. LaShawn prints five shirts per hour. A retailer offers to buy 1000 shirts at seven dollars each. Should Tray agree to the deal?


A) Yes, Tray will make a profit of one dollar per shirt.
B) No, Tray will not make a profit at this price.
C) Yes, Tray will make a marginal profit at this rate.
D) Yes, even though he may lose money he can make up for it in volume.

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