SOLUTION: Randy Ko is a t-shirt vendor. The fixed cost of any order if $7500, the variable cost is $20 per shirt. Randy's selling price is $120 per shirt, until a week after the tournament w

Question 979996: Randy Ko is a t-shirt vendor. The fixed cost of any order if $7500, the variable cost is $20 per shirt. Randy's selling price is $120 per shirt, until a week after the tournament when it will drop to $75 a piece. The expected demand at full price is 1500 shirts. How much profit will he earn?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
The fixed cost of any order if $7500, the variable cost is $20 per shirt.
Randy's selling price is $120 per shirt, until a week after the tournament when it will drop to $75 a piece.
The expected demand at full price is 1500 shirts.
How much profit will he earn?
:
Find the cost to produce 1500 shirts
c = 7500 + (1500*20)
c = $37500 total cost
l
Find the revenue from selling 1500 shirts
r = 1500*120
r = $180,000
:
profit = reve - cost
p = 180000 - 37500
p = $142,500 profit
RELATED QUESTIONS
Eliz of Eliz's t-shirts says her fixed expenses for the month are $24490 and the cost of (answered by ikleyn)

A sweatshirt cost $9 more than a T-shirt. Together, the shirts cost $23. What is the cost (answered by checkley77)

Sherry Weinstein, a buyer, has decided that she will spend an extra $7 per shirt for the... (answered by stanbon)

how much is the full total if a shirt cost 59.99 but is 20% off (answered by Phillips54)

A pair of pants costs twice as much as a shirt. The total cost of 1 pair of pants and 1... (answered by rfer)

the cost to produce a custom designed t-shirt is five dollars per shirt plus a 40 dollar... (answered by stanbon)

A shirt and a tie together cost $50. The shirt costs $24 more than the tie. What is the... (answered by ewatrrr)

Each gym T-shirt cost a school less than $12. Which inequality represents the cost, in... (answered by Alan3354)

a t shirt and a pair of socks cost 12.70$ if 2 pairs of socks cost 1.45$ less than one t... (answered by stanbon)