Question: 2 . You are a CEO! You are building a company centered around a cool design for a T - shirt. Step 1 The Design

2. You are a CEO!
You are building a company centered around a cool design for a T-shirt.
Step 1 The Design - production costs and selling price
- Let's look at the production costs for the T-shirts. No matter how many T-shirts you produce, you pay the factory \(\$ 90\) for electricity. Then, you pay \(\$ 7\) per T-shirts to make it. You want to sell the shirts for \(\$ 20\) each. Write the equation for the production costs Pt.
- Write the equation for the selling revenue from the T-shirts, St.
Step 2 Diversification
- Obviously, you cannot have a profitable company selling just T-shirts. So you decide to put your design on other products to increase the rentability of the whole project. In addition to T-shirts, you will sell mugs and keychains.
- You can sell mugs for \(\$ 13\) and they cost \(\$ 10\) to make.
- Keychains are cheap to make, they cost \(\$ 2\) per keychain plus \(\$ 2\) of fixed cost.
- Keychains can be sold for \(\$ 5\).
- Write the equations for the production costs and selling revenues of the mugs \(\mathbf{P m},\mathbf{S m}\) and the keychains \(\mathbf{P k},\mathbf{S k}\).
Step 3 How much can you sell?
- Realistically, it will be much easier to sell keychains on campus, so you expect to sell 10 times the amount of T-shirts.
- You figured out researchers drink a lot of coffee so you show up at every conference on campus and sell a large quantity of mugs: half the amount of keychains plus twice the amount of T-shirts.
- Write the equations for the number of mugs \(\mathbf{N m}\) and keychains \(\mathbf{N k}\).
2 . You are a CEO! You are building a company

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