Left Eye Promotions is a specialty retailer offering T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $27,000 of T-shirts, $21,000 of sweatshirts, and $3,500 of caps. The company is adding polo shirts to the lineup and projects that this addition will result in sales next year of $25,000 of T-shirts, $17,000 of sweatshirts, $14,000 of Polo shirts, and $3,000 of caps. What sales amount should be used when evaluating the Polo shirt project? Multiple Choice $13,300 $7,500 $6,700 $6,800 $7,900
Sales of Polo Shirt = [Next Yrs Annual Sales of T-Shirts + Next Yrs Annual Sales of Sweatshirts + Next Yrs Annual Sales of Polo Shirts + Next Yrs Annual Sales of Caps] - [Annual Sales of Polo Shirt + Annual Sales of Sweatshirts + Annual Sales of Caps]
= [$25,000 + $17,000 + $14,000 + $3,000] - [$27,000 + $21,000 + $3,500]
= $59,000 - $51,500 = $7,500
So, 2nd Option is correct.
Left Eye Promotions is a specialty retailer offering T-shirts, sweatshirts, and caps. Its most recent annual...
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