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A manufacturer of men’s 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 company’s operating profit last year was