Several students decide to start a T-shirt company. After initial expenses of $280, they purchase each T-shirt wholesale for $3.99. They sell each T-shirt for $10.99. How many must they sell to break even?

Each T-shirt earns $10.99 − $3.99 = $7.00 toward covering the initial $280 expense. Divide $280 by $7.00 per shirt to get 40 shirts. They break even after selling 40 shirts, which is choice D, 40 shirts.

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