Answer:
a. $300 and $60
b. 50 shirts and $750
Step-by-step explanation:
The computation is shown below:
a. The total revenue would be
= Number of shirts sold × selling price per shirts
= 20 shirts × $15
= $300
The variable cost would be
= Number of shirts sold × materials used in one shirt
= 20 shirts × $8
= $160
b. The net profit is
= Selling price per shirts - materials used in one shirt
= $15 - $8
= $7
And, the cost of using the equipment is $350
So, the break-even sales is
= $350 ÷ $7
= 50 shirts
And, the revenue is
= 50 shirts × $15
= $750