Calculate and enter the amount of change in operating profit

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Question - Montville Ltd buys T-shirts in bulk, applies its own trendsetting silk-screen designs and then sells that T-shirts to a number of retailers.  Montville wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Montville T-shirt.  Montville presents the following data for its first two years of operations, 2019 and 2020.


2019

2020

Number of T-shirts purchased

182,000

240,000

Number of T-shirts discarded

1,000

3,000

Number of T-shirts sold

181,000

237,000

Average selling price

$31

$31

Average cost per T-shirt

$11

$8

Administration capacity (# customers)

3740

3080

Administration cost

1295,000

1235,000

Administration cost per customer

347

401

Administrative costs depend on the number of customers that Delictrends has created capacity to support, not on the actual number of customers served. Montville had 2 400 customers in 2019 and 2 500 customers in 2020

Required - Calculate and enter the amount of change in operating profit due to growth?

Reference no: EM133114289

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