Ships Ahoy Is a Small Company That Makes Model Sailboat

question 17

Multiple Choice

Ships Ahoy is a small company that makes model sailboat kits priced at $120 each. (There is no quantity discount.) The cost of the materials that go into each kit is $45. It costs $5 in labour 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 $3,500 for the monthly salary of its owner. Last month the company sold 150 kits. Ships Ahoy's total revenue for the month was:

• A)$10,500.
• B)$6,750.
• C)$18,000.
• D)$7,500.