Question

Tumble Company sells coats for \( \$ 175.00 \) each. The variable costs per coat are \( \$ 70.75 \) and the fixed costs per week are \( \$ 30.00 \). If they sold 16 coats in a week, how much profit di

Answer 1

The revenue from selling 16 coats at $175.00 each is:

16 x $175.00 = $2,800.00

The total variable costs for 16 coats are:

16 x $70.75 = $1,132.00

The total costs for the week are the sum of variable and fixed costs:

$1,132.00 + $30.00 = $1,162.00

Therefore, the profit is:

$2,800.00 - $1,162.00 = $1,638.00

So, Tumble Company's profit for selling 16 coats in a week is $1,638.00.