Question

2. Does this fourth shirt earn an operating profit or impose an operating loss? How large is it?

3. What is the change in total revenue from lowering the price to sell seven rather than six shirts in each color each day? In what sense is the decision to sell this seventh shirt a “break point”?

8. At 14 shirts per day, the margin is positive. But what is the operating profit or loss on the 14th? The 12th? The 10th shirt?

Quantity	Price	Revenue	Marginal Rev	Variable Cost
0	50	0	0	28
1	48	48	48	28
2	46	92	44	28
3	45	135	43	28
4	44	176	41	28
5	42	210	34	28
6	40	240	30	28
7	38.31	268.17	28	28
8	36.5	292	24	28
9	34.5	310.5	19	28
10	32.7	327	16	28
11	30.91	340.01	13	28
12	29.17	350.04	10	28
13	27.46	356.98	7	28
14	25.79	361.06	4	28
15	24.07	361.05	0	28
16	22.5	360	-1	28