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Answer using excell Considering that all the variable from Decision Making - Case 1, Cougar Inc. can make an additional 2,500 shirts by adding $10,000
Answer using excell
Considering that all the variable from "Decision Making - Case 1", Cougar Inc. can make an additional 2,500 shirts by adding $10,000 in fixed costs The following represents the sales and costs in a normal month, including the extra for making more t-shirts \begin{tabular}{l|rr} New Capacity of the factory: T-shirts per month & & 19,500 \\ \hline T-Shirts sold in a normal month & & 15,000 \\ \hline Selling Price of T-shirts & $ & 50.00 \\ Cost to Cougar Inc of each shirt (material \& labor) & $ & 35.00 \\ Monthly fixed costs for rent, utilities, accountants, etc & $ & 65,000.00 \\ Fixed Costs for making an additional 2,500 T-Shirts & $ & 10,000.00 \end{tabular} A iirt. QUESTION: Should Cougar Inc. sell Longhorn Ltd. the T-shirts? How much would they gain or lose by taking this deal? Remember that if they sell the T-shirts to Longhorn Ltd. for $40, they cannot sell them to UH fans for $50 Create an income statement for Cougar Inc. doing business as normal. THEN create one for if they accept Longhorn Ltd's proposal. THEN calculate how much Cougar Inc. would make or lose by accepting the offer. BE SURE YOU DO ALL 3 PARTS and Show your Work Partial credit will be awarded if I can figure out you are on the right trackStep by Step Solution
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