Question

If the retailer can sell 5,000 tee-shirts at $40 each, how much profit can Atrium make?

a) $100,000
b) $120,000
c) $160,000
d) $200,000

Answer 1

The retailer's total revenue from selling 5,000 tee-shirts at $40 each would be $200,000. However, without knowing the production costs, we cannot determine the profit, only the revenue.

Step-by-step explanation:

If a retailer sells 5,000 tee-shirts at $40 each, we can calculate the total revenue by multiplying the number of tee-shirts (5,000) by the price per shirt ($40), which equals $200,000. However, to determine the profit, we need information about the cost to produce these shirts. Without this, we cannot provide a definitive answer.

In the absence of cost details from the given question and provided examples, the assumption is that the $200,000 figure represents total revenue rather than profit. A profit calculation would require subtracting the total costs incurred for producing the tee-shirts from the total revenue. If the $200,000 is assumed to be the profit after costs, then the correct answer would be option (d) $200,000, but without the cost information, this remains a hypothesis and not a confirmed answer.