Question

The fixed cost of making clothes for a clothing store for three years is $40,000. The number of pieces of clothing bought per year is variable and ranges between 100 and 200 pieces of clothing. Each garment is sold for $90. Look at the five scenarios where random numbers were generated to show the number of garments for three years.




Scenario

Year 1

Year 2

Year 3



A

134

194

127



B

143

109

141



C

170

194

104



D

171

164

122



E

141

160

173


In which of these simulated scenarios

Answer 1

The Answer is B. What you do is take each year and add them up and multiply them by 90.

Example: Scenario B

Year 1 Year 2 Year 3
143 109 141

Add each year. 143+109+141=393
Then you multiply the answer by 90 because each garment is $90.
393*90= $35,370

Since your total income is less than your total cost B is the answer.