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Arlo's T-shirt Shop only has four costs: T-shirt cost, rent cost on the shop, shipping cost, and utilities cost. Arlo's sells the T-shirt for $25
Arlo's T-shirt Shop only has four costs: T-shirt cost, rent cost on the shop, shipping cost, and utilities cost. Arlo's sells the T-shirt for $25 each. Management has prepared the following estimated cost information for next month: Assume that all of the activity levels mentioned in this problem are within the relevant range. Use the high-low method to determine the cost formulas for each cost Calculate what Arlo's should expect for total variable cost if 5, 500 T-shirts are sold next month (include purely variable costs and the variable portion of mixed costs). Prepare Arlo's contribution approach income statement for a monthly sales volume level of 17,000 T-shirts (remember; the mixed costs have both a fixed element and a variable element.)
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