Question

Question 24 2 pts Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. If Maddie sells a screened t-shirt for $15 each, what is the contribution margin for t-shirts? $9 a unit $7 a unit $13 a unit $15 a unit

Answer 1

24. $7 a unit

Sales price     = $ 15

Cost of t-shirt= $ 6

Silk screening= $ 2

Margin = sales price – cost per T-shirt

Contribution margin = $15- $8

Contribution margin = $7 a unit

32. Result may be somewhat misleading in that buyer intentions do not translate into actual purchases.

It is correct because intentions of the person are known to himself and it cannot be predicted with the help of the surveys. It is only in the mind of person whether he wants to do impulse purchase or want to research about the product.

36.   It cannot be used to predict the sales of the new products.

Trend analysis means that technical analysis which is used to predict the future stock price based on recent trend data that observed.