TONI’S T-SHIRTS
TechnOption
PURPOSE:

to use technology to help identify breakeven point

to explore the capabilities of the computer spreadsheet
READY?
Participants are ready for this exercise when they have completed “Toni’s T-Shirts” and are
comfortable with the terminology and concepts presented in it. You should be comfortable using
Microsoft ® Excel spreadsheets (the fields and formulas are set for you) before asking students
to use them.
MATERIALS:

formulas, paperwork, and calculations from “Toni’s T-Shirts”

calculators (1 per pair of participants)

“What If?” sheets (1 per participant)

“What If” sheet and solution pages (for the instructor)
TECHNOLOGY:

Microsoft ® Excel software

REAL computer templates

participants’ storage disks (optional)

computer and printer
TIME:
60-90 minutes
PROCEDURE:
1. Set up computer stations; each computer should have Microsoft ® Excel installed on its
hard drive and a copy of the REAL computer templates available. Have participants work
in pairs or in the smallest groups possible given the number of computers available.
2. Help students locate and open the “Toni’s T-Shirts” (tonistsh.xlt) file on the REAL
templates. They should then transfer the figures gathered during the original activity onto
the spreadsheet. Instruct students to use the “save as” command to create a new “Toni's
T-Shirts” file on their disks. This will allow them to enter and manipulate data without
affecting the original REAL template.
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TONI’S T-SHIRTS (TO) p. 1
3. Participants may find it helpful to print a copy of the spreadsheet they’ve created so that
they can compare it to their hand-written work. If there are differences between the two
versions, participants should resolve them.
4. Distribute “What If?” sheets and give participants time to make the calculations
suggested in the scenarios. Discuss results as a class or in small groups.
REFLECTION:
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Lead a debrief of the activity based on the following questions:

How did the process and results of determining breakeven point on the computer
compare to doing it by hand?

What limitations does the electronic spreadsheet have? What limitations do you have in
using it?

Could you use an electronic breakeven point analysis to help determine the potential
success/failure of your own business or another moneymaking idea? What additional
information or training would you need?
BRIDGES:

School fund-raisers take place frequently. Suggest to students that they identify one and
apply what they’ve learned in this activity to determine its breakeven point.

“Are We Having Funds Yet?” “Markolini,” and “Welda Rodd” also deal with breakeven
point analysis and include TechnOptions.
Breakeven point analysis should be included in the Financials section of the business plan.
A printout of the computerized spreadsheet presents the information in a polished,

professional format.
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WHAT IF?
NOTE: Use the “save as” command to create a copy of “Toni’s T-Shirts” file on your disk. This
will allow you to enter and manipulate data without affecting the original REAL templates.
1. Transfer the following data to the “Toni’s T-Shirts” (TONISTSH .xlt) spreadsheet on the
REAL template:
Operating Costs
Sales Price
Rent
$100
Loan Payment
$200
Insurance
$30
Phone
$75
Utilities
Printed T-Shirt
$8.00
Cost of Goods Sold
Ink
$1.00
$150
T-shirt
$4.00
Owner’s Draw
$400
Sales Commission
Office Supplies
$15
on Retail Price
10%
Compare your spreadsheet answers to your hand-written answers and correct any
discrepancies. Please note that rounding errors may occur. Always round up on t-shirt
figures.
2. Toni buys a new car. As a first-time buyer, she will not need a down payment, but her
monthly payments are $300. Therefore, she needs to increase her owner’s draw to
Commented [BW1]: Is this the same as her salary?
$700. Apply this information to the spreadsheet and determine the number of t-shirts she
will have to sell to pay for her new car. What is the new breakeven point?
3. Sericol, an ink and chemical supplier out of Kansas City, offers to supply materials to
Toni at a lower cost than her current supplier. She calculates that buying from Sericol will
reduce her cost of production by $0.50 per shirt. Use the spreadsheet to recalculate
Toni’s breakeven point.
4. Toni is contacted by Sanmar, a Seattle, Washington-based supplier, thatwho offers to
supply her with Hanes ‘Beefy-T,’ 50/50 t-shirts for $2.85 per shirt when ordered in lots of
6 dozen. According to her calculations, this should reduce her cost per shirt by $1.15.
Include all information in scenario’s 1, 2, and 3 above, and recalculate her breakeven
point.
5. Knowing the cliché that business success depends on 3 things (location, location,
location), Toni decides that moving to a new place of business will increase sales. She
visits with a local rRealtor and finds a suitable location for $1,000 per month. In order to
attract the customers needed to cover the higher rent, she decides to advertise with a
local radio station, committing an additional $250 per month to advertising. Apply these
changes to the spreadsheet and recalculate breakeven point.
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TONI’S T-SHIRTS (TO) p. 3
WHAT IF?
Answer Sheet
NOTE: Use the “save as” command to create a copy of “Toni’s T-Shirts” file on your disk. This
will allow you to enter and manipulate data without affecting the original REAL template.
1. Refer to Solution 1. The breakeven point is $3527.27 or 441 t-shirts.
2. Refer to Solution 2. She will now have to sell 578 t-shirts, and her breakeven is
$4618.18.
3. Refer to Solution 3. She will now have to sell 471 t-shirts, and her breakeven is
$3762.96.
4. Refer to Solution 4. She will now have to sell 330 t-shirts, and her breakeven is
$2638.96.
5. Refer to Solution 5. She will now have to sell 629 t-shirts, and her breakeven is
$5028.57.
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