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A manufacturer of mens t-shirts had the following information for last year. Number of shirts sold and produced 125,000 Sale price per shirt $40 Direct

A manufacturer of mens t-shirts had the following information for last year.

Number of shirts sold and produced

125,000

Sale price per shirt

$40

Direct manufacturing

$10/shirt

Setup cost

$100/setup hour

Setup hours

10,000

Shipping costs

$200/shipment

Number of shipments

4,000

Administrative cost

$8/shirt

The companys operating profit last year was
A. $950,000
B. $1,950,000
C. $2,750,000
D. $3,750,000

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