Final answer:
C&A makes a profit of $450 per hour from selling T-shirts after considering production rates, material costs, fixed costs, and labor costs at the given wage rate.
Step-by-step explanation:
Calculating C&A's Profit Per Hour
To calculate the profit C&A makes per hour from selling T-shirts at $15 each, with material costs at $2 per shirt and fixed costs at $300 per hour, we need to consider production rates and labor costs as well. Each worker earns a wage rate of $15 per hour and takes two minutes to make one shirt. With two workers, that amounts to 60 shirts produced per hour (since 60 minutes / 2 minutes per shirt = 30 shirts per worker).
The total revenue from selling 60 shirts at $15 each is $900 (60 shirts × $15 per shirt). The total variable costs are $120 for material (60 shirts × $2 material cost per shirt) and $30 for labor (2 workers × $15 wage rate per hour). Including the fixed costs of $300 per hour, the total costs add up to $450 ($120 for materials + $30 for labor + $300 fixed costs).
Subtracting the total costs from the total revenue, the profit C&A makes per hour is $450 ($900 - $450). So the correct answer is B. $450.