Posted by fay on Friday, July 6, 2012 at 7:24pm.
The MathIsFun Tshirt Company manufactures and sells screenprinted tshirts. The fixed costs of operation for the company are $75,750 per month. Tshirts are sold to wholesale buyers for $8.99 each, but only cost the company $3.20 each to produce. If the Tshirt Company manufactures and sells 50,000 Tshirts in July, what will be their net profit for the month?

math  Steve, Friday, July 6, 2012 at 11:34pm
cost: 75750 + 50000*3.20
revenue: 50000*8.99
profit: 50000*(8.993.20)  75750 = 213,750
Technically, this is the gross profit. If you subtract other costs like taxes, insurance, etc. what's left is the net profit. Gross profit is just based on the revenue/cost of goods, and does not include other, maybe variable costs.
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