Question

-shirt Bobbie has a shop next to a large sports stadium. Suppose T-shirt Bobbie sells 1,500 shirts for $20 each. It costs her $34,000 per month to lease a building, rent t-shirt equipment, purchase plain t-shirts and various decals, pay herself, and employ some part-time workers to help when business is buzzing. What is her profit under this scenario? (Enter numbers only, no dollar sign, comma, period, or cents. For example, if your answer is $1,000 then enter 1000 as your submission; if your answer is -$1,000 then enter -1000)

Answer 1

Profit = Revenue - Costs

P = 1500(20) - 34000
= 30000 - 34000
= - 4000

Answer 2

Shirt Bobbie's profit under this scenario is:

• - 4000.

Step-by-step explanation:

Profits are regularly calculated by identifying income and discounting expenses, so the formula could be said to be:

• Earnings = Income - Expenses

It is mentioned in the text that the income is the sale of 1500 shirts at a cost of $ 20, so it is calculated by multiplying these values:

• $ 20 * 1500 = $ 30,000

Since it is mentioned that the monthly expenses are $ 34000, we proceed to calculate the earnings:

• Earnings = $ 30,000 - $ 34,000
• Earnings = - $ 4000

It can be identified that the shirt business is generating negative profits, that is, losses, so it must be restructured or budgeted to identify money leaks.