During May,Team Shirts spent $4,000 to buy 800 T-shirts.In May,Team Shirts sold 300 of them for $15 each.The rest were sold for cash of $12 each in June.Net income for May and June was ________.

Question

Quizplus · Accepted Answer

1. May expenses: $4,000
2. Cost per shirt: $4,000/800 = $5
3. Revenue from selling 300 shirts in May: 300 x $15 = $4,500
4. Number of shirts remaining: 800 - 300 = 500
5. Revenue from selling 500 shirts in June: 500 x $12 = $6,000
6. Total revenue: $4,500 + $6,000 = $10,500
7. Total expenses: $4,000
8. Net income: $10,500 - $4,000 = $6,500
9. Net income for May: $4,500 - $4,000 = $500
10. Net income for June: $6,500 - $500 = $6,000

Therefore, the best choice is B as it is the only option where the net income for May is $500 and for June is $6,000.

During May,Team Shirts Spent $4,000 to Buy 800 T-Shirts