Mr McCarthy has a business that manufactures T-shirts. It costs R 30 to produce one shirt and he will sell each shirt for R80. The company can produce a maximum of 70 shirts in a week. a) Write an expression for the total income that will come from producing x number of shirts. b) Write an expression for the weekly expenses for the factory be if x shirts are produced and they have a fixed starting cost of R 1 000. c) Draw the graph showing both the income and expenses on one set of axis. What is the break-even point of the graph? d) e) Mr McCarthy got an order of 300 T-shirts from a company in Canada. What is the cos of a T-shirt in Canadian dollars? The exchange rate is 1 CAD = 8.88 ZAR How much profit per T-shirt will Mr McCarthy make in Canadian dollars? Mr McCarthy quotes the Canadian company 9 $ per T-shirt and then he finds out that the exchange rate has changed to 1 CAD = 10.30 ZAR. Is this a good or a bad thing for Mr McCarthy? Why?
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