To calculate the net profit for the month, we need to consider the revenue and the expenses.
To find the revenue, we multiply the number of t-shirts sold by the selling price per t-shirt. In this case, the company sells 50,000 t-shirts at a price of $8.99 each. So the revenue can be calculated as follows:
Revenue = Number of t-shirts sold ร Selling price per t-shirt
Revenue = 50,000 ร $8.99
To find the expenses, we need to consider both the fixed costs and the variable costs. The fixed costs are given as $75,750 per month. The variable costs are the cost to produce each t-shirt, which is $3.20 per t-shirt. The total variable cost can be calculated by multiplying the cost per t-shirt by the number of t-shirts sold:
Variable costs = Cost per t-shirt ร Number of t-shirts sold
Variable costs = $3.20 ร 50,000
Now, we can calculate the net profit by subtracting the total expenses (fixed costs + variable costs) from the revenue:
Net profit = Revenue - (Fixed costs + Variable costs)
Net profit = (50,000 ร $8.99) - ($75,750 + (3.20 ร 50,000))
By substituting the given values, we can find the final answer.