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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Business

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17 August, 05:42

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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Answers (1)

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Diamond Fischer · Answer 1

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