Gina fox has started her own company, foxy shirts, which manufactures imprinted shirts for special oc- casions. since she has just begun this operation, she rents the equipment from a local printing shop when necessary. the cost of using the equipment is $350. the materials used in one shirt cost $8, and gina can sell these for $15 each. (a) if gina sells 20 shirts, what will her total rev- enue be? what will her total variable cost be? (b) how many shirts must gina sell to break even? what is the total revenue for this?

a. $300 and $60

b. 50 shirts and $750

Explanation:

The computation is shown below:

a. The total revenue would be  

= Number of shirts sold × selling price per shirts

= 20 shirts × $15

= $300    

The variable cost would be

= Number of shirts sold × materials used in one shirt

= 20 shirts × $8

= $160

b. The net profit is

= Selling price per shirts - materials used in one shirt

= $15 - $8

= $7

And, the cost of using the equipment is $350

So, the break-even sales is

= $350 ÷ $7

= 50 shirts

And, the revenue is

= 50 shirts × $15

= $750

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%