For one T-shirt the printing cost = $4.25
Therefor for x T-shirts the cost = $4.25x
Cost of setup printing machine = $35
Total cost for x T-shirts = $35 + $4.25x
Average = ($35 + $4.25x)/x
C(x) = ($35 + $4.25x)/x
For x = 25
Put x=25 in C(x)
Avg. cost = $5.65
and for x = 100
Avg. cost = $4.6
cheapest the average cost per T-shirt
As the number of T-shirts increases the cost per T-shirt will be reduced.