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A quick estimate might be: $2 for the transfer, $1 for the ink, $2 for the shirt. $5 total materials. Double that for a mark up. $10 plus $2-$4 per shirt for your labor.

If it was for a friend I'd probably do them for $12 each, since it's 12 shirts. If it was just one I'd charge $18.
 

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My opinion about artwork is if I can spend half an hour to 45 minutes cleaning something up to make a print look really nice as opposed to sort of...meh, it's worth that time in the repeat business and word of mouth advertising the customer will provide. No matter who's fault it is, if a customer doesn't like the shirts it's bad for business.

Another benefit to cleaning up "artwork" without being asked is that you don't have to let anybody else use it. If a customer's brother says he'll do a reprint for half my price and can I please forward the art, the customer's brother gets the same low res image that I originally got. Chances are the reprint will be inferior to the original run and the customer will wish he'd left it with me instead of trying to save money.
 
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