mehasanimam
A department store receives a shipment of 1,000 shirts, for which it pays $9,000. The store sells the shirts at a price 80 percent above cost for one month, after which it reduces the price of the shirts to 20 percent above cost. The store sells 75 percent of the shirts during the first month and 50 percent of the remaining shirts afterward. How much gross income did sales of the shirts generate? (A) $10,000 (B) $10,800 (C) $12,150 (D) $13,500 (E) $16,200 Hey! I see this question wants gross income( gross income means total revenue minus cost of goods sold/buying price), but why the questioner gave options of gross revenue instead of gross income?
D
Cost price of 1 shirt is $9
Shirts sold in first month = 750
Price of shirts sold in first month = 9 + 7.2 = $16.2
Income for the first month = 750*16.2 = $12,150
Remaining shirts = 250
Shirts sold in second month = 1/2 * 250 = 125
Price of shirts sold in second month = 9 + (20% of 9)
= 9 + 1.8
= $10.8
Income in second month = 10.8 * 125
= 1350
Total income after 2 months = 12,150 + 1,350
= $13,150