Question

Sarah orders 34 shirts that cost $7 each. She can sell each shirt for $15. She stole 27 shirt to customers she had to return 7 shirts and pay a $2 charge for each returned shirt. FIND SARAH’S PROFIT.

Answer 1

Sarah's profit from selling shirts is calculated by subtracting the costs (purchase and return charges) from her sales revenue, resulting in a total profit of $153.

Step-by-step explanation:

To calculate Sarah's profit from selling shirts, we must consider the total cost of the shirts, the revenue from selling the shirts, and the costs associated with returns.

1. First, calculate the total cost of the shirts by multiplying the number of shirts ordered by the cost per shirt: 34 shirts × $7 = $238.
2. Then, calculate the total revenue by multiplying the number of shirts sold by the selling price per shirt. Sarah sold 27 shirts at $15 each, resulting in a revenue of 27 × $15 = $405.
3. Next, consider the returned shirts. Sarah had to return 7 shirts. For each returned shirt, there is a $2 charge. So, the cost for returns is 7 × $2 = $14.
4. Calculate the profit by subtracting the total costs (initial cost + return charges) from the total revenue. Profit = $405 - ($238 + $14) = $405 - $252 = $153.

Therefore, Sarah's profit from the shirt business is $153.