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700 Shirts Are Sold as Seconds at $18 Per Shirt

Question 96

Multiple Choice
700 shirts are sold as seconds at $18 per shirt. Cost of spoiled shirts is $501,400. Cost of shirts at inspection point equals $9,508,000. Calculate the net cost of the spoilage.

700 shirts are sold as seconds at $18 per shirt. Cost of spoiled shirts is $501,400. Cost of shirts at inspection point equals $9,508,000. Calculate the net cost of the spoilage.


A) $9,495,400
B) $488,800
C) $514,000
D) $9,520,600

Correct Answer:

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