Julie makes and sells shirts for children and adults. She sells the shirts for $20 per unit. Material for

the shirts cost $6 each. She has fixed costs per month of $420 and estimates that she can make

and sell 80 shirts each month. How many shirts does Julie need to sell to break even?

Julie need to sell at least 45 shirts to break even.

Step-by-step explanation:

The selling cost of each shirt = $ 20

Cost of each shirt = $6

The fixed cost per month = $420

Number of shirts she can make = 80

Hence, the cost of making 80 shirts = 80 x $6 = $480

So, her total capital investment of the month

= Cost of shirts made + Fixed cost = $420 + $480 = $900

Now, let us assume she sell k number of shirts.

⇒ $20 x k = $900

or, k = 900 / 20 = 45

or, k = 45

Hence, Julie need to sell at least 45 shirts to break even.