Problema Solution
Kathy Fox purchased a computerized embroidery machine for $14,500 to begin an at-home business of making embroidered-logo golf shirts. She has two qualities of shirts. The cheaper shirt costs $4.62 each to produce and wholesales for $9.70 each. The more expensive shirt costs $6.21 each to produce and wholesales for $13.66 each. She has first-year orders for 3000 of the cheaper shirt and 500 of the more expensive. Find her profit or loss for her first-year orders.
Answer provided by our tutors
3000(9.70 - 4.62) + 500(13.66 - 6.21) - 14500 = $4,465
click here to see the step by step calculation
The profit for the first year orders is $4,465.