Scooby's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities...
- Scooby's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities cost. Arlo's sells the T-shirts for $14.50 each. Management has prepared the following cost information for next month:
|
At 8,000 |
At 10,000 |
||
|
T-shirts |
T-shirts |
||
|
T-shirt cost |
$48,000 |
$60,000 |
|
|
Rent cost |
$3,600 |
$3,600 |
|
|
Utilities cost |
$6,800 |
$8,300 |
Assume that all the activity levels mentioned in this problem are within the relevant range.
Required:
Estimate Scooby's total variable cost if 9,000 T-shirts are sold next month.
Estimate Scooby’s contribution margin if 10,000 T-shirts are sold.
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Scooby's T-shirt Shop only has three costs: T-shirt cost, rent
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