Forever Quilting is a small company that makes quilting kits

Forever Quilting is a small company that makes quilting kits priced at $120 each. There is no quantity discount. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Last month the company sold 150 kits. Forever Quilting\'s total revenue for the month was

Multiple Choice

$4,300.

$6,200.

$7,500.

$10,500.

$18,000.

Solution

The total revenue for a company will be the product of the price it charges for its products and the number of product it sells. It has nothing to do with the costs. Hence the total revenue is:

TR = $120 x 150 = $18000.

Ans: The total revenue is $18000.