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2 February, 23:04

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. If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be?

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  1. 2 February, 23:27
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    Total revenue = $300

    Total variable cost = $160

    Explanation:

    The computation is as follows:

    The total revenue equal to

    = Number of shirts sold * selling price per shirt

    = 20 shirts * $15

    = $300

    And, the variable cost equal to

    = Number of shirts sold * materials used in one shirt

    = 20 shirts * $8

    = $160

    The material used in one shirt is treated as a variable cost per shirt
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