Tee-Pro has three types of costs: t-shirt cost, factory rent cost, and utilities cost. This company sells

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Tee-Pro has three types of costs: t-shirt cost, factory rent cost, and utilities cost. This company sells its shirts for $16.50 each. Management has prepared the following estimated cost information for next month under two different sales levels.
At 10,000 Shirts................At 12,000 Shirts
T-shirt cost . . . . . . . . . . .......................... $80,000......................... $96,000
Rent cost . . . . . . . . . . ............................. . 6,000............................ 6,000
Utilities cost . . . . . . . . .............................. 8,400............................ 9,900
Required
1. Compute what the company should expect for total variable cost if 11,000 shirts are sold next month.
2. Prepare its contribution margin statement for a monthly sales volume of 12,000 jackets
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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