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2. Assume that the Pants Shop can purchase pants for $32 from a local factory: other variable costs amount to $10 per unit. The local
2. Assume that the Pants Shop can purchase pants for $32 from a local factory: other variable costs amount to $10 per unit. The local factory allows the Pants Shop to return all unsold pants and receive a full $32 refund per pair of pants within one year. The average selling price per pair of Pans is 70, total fixed costs amount to $84.000 and 2.500 units are sold, How much variable costs will the business incur? a. $14,000 b. $105,000 c. $84.000 d. $70,000
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