The Shirt Factory sells dress shirts. Currently, it sells 18,000 shirts annually at an average price of $90 each. It is considering adding a lower-priced line of shirts that sell for $60 each. The firm estimates it can sell 7,000 of the lower- priced shirts but will sell 2,500 less of the higher-priced shirts by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced shirts? A. $146,000 B. $190,500 C. $195,000 D. $420,000 E. $1,815,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The shirt factory sells dress shirts please solve this question ❓

The Shirt Factory sells dress shirts. Currently, it sells 18,000 shirts annually at
an average price of $90 each. It is considering adding a lower-priced line of
shirts that sell for $60 each. The firm estimates it can sell 7,000 of the lower-
priced shirts but will sell 2,500 less of the higher-priced shirts by doing so.
What is the amount of the sales that should be used when evaluating the
addition of the lower-priced shirts?
A. $146,000
B. $190,500
C. $195,000
D. $420,000
E. $1,815,000
Transcribed Image Text:The Shirt Factory sells dress shirts. Currently, it sells 18,000 shirts annually at an average price of $90 each. It is considering adding a lower-priced line of shirts that sell for $60 each. The firm estimates it can sell 7,000 of the lower- priced shirts but will sell 2,500 less of the higher-priced shirts by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced shirts? A. $146,000 B. $190,500 C. $195,000 D. $420,000 E. $1,815,000
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