Let's assume that the number of shirts that must be sold to cover the costs is x.
The revenue from selling x shirts is 12x dollars, and the total cost is the sum of the setup fee and the cost per shirt multiplied by the number of shirts, which is 65 + 7x dollars.
To break even, the revenue must be equal to the cost:
12x = 65 + 7x
Subtracting 7x from both sides:
5x = 65
Dividing both sides by 5:
x = 13
Therefore, the student council must sell 13 shirts to break even.
To find the total costs, we can substitute x = 13 into the expression for the total cost:
65 + 7x = 65 + 7(13) = 156
So the total costs will be $156.