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Forever Quilting Is a Small Company That Makes Quilting Kits

Question 154

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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


A) $4,300.
B) $6,200.
C) $7,500.
D) $10,500.
E) $18,000.

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