a piece is $1200. Subtract my total cost and we get $430 per 100 shirts sold.Figure 1 - 2:Reservation PriceQuantity demandedTotal RevenuePossible Profit For 100 salesTotal Profit$1079$7901000790-770=20$1270$8401200840-770=70$1547$7051500705-770=-65$185$90180090-770=-680The only tax that would incur through this type of sales would be the sales tax on the cost of shirts that would be imposed on me, the distributor. At a rate of 7.5% in the state of Florida, the overall cost of the shirts would jump from $770.00 to $827.75 subtracting $57.75 from my overall profits. Even with this downside it is perfectly clear that $12 is still the optimal earning price of my good. Because an operation like this is totally legal with the consent of the school, there would be no government regulations or fees. This tax would not affect my total pricing strategy in any significant way.I obtained my quotes from local Pensacola business’ as well as online shopping guides. As I stated earlier, my best quote came from an online business that deals primarily with bulk purchasing of personalized tee shirts and designs. The name of the business is The Identity Club! at http://www.freetees.com/quantityFM.htr. My projected sales of this shirt will take place at the actual gathering. It is here that I feel my product will sell at a higher rate opposed to on campus at the University where people probably won’t have money on them as well as won’t be nearly intoxicated enough to spend money that a normal (broke) college student doesn’t have. Even though some will say that I am taking advantage of my potential audience, I feel that that is the way that business goes anyway. Businesses hit the consumers where they are vulnerable in order to achieve a selling technique that exceeds that of any other.In the future, I may consider doing business with this company for I am in actuality in charge of making the shirts for this specific pa...
