Calculate :

1) Revenue Effect of Growth

2) Cost Effect of Growth for Variable Costs

3) COST EFFECT OF GROWTH FOR FIXED COSTS

4) REVENUE EFFECT OF PRICE RECOVERY

5) COST EFFECT OF PRICE RECOVERY for Variable Costs

6) COST EFFECT OF PRICE RECOVERY FOR FIXED COSTS

by using this formula:

WC buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. WC wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive WC T-shirt. WC presents the following data for its first two years of operations, 2016 and 2017. 2016 2017 1 Number of T-shirts purchased 225,500 Number of T-shirts discarded 20,500 Number of T-shirts sold (row 1 (row 2) 205,000 257,000 24,000 2 3 233,000 4 Average selling price $ 32.00 $ 33.00 $ 15.00 4,450 5 Average cost per T-shirt $ 17.00 6 Administrative capacity (number of customers) 4,700 Administrative costs $ 1,739,000 8 Administrative cost per customer (row 7+ row 6) $ 370 7 $ 1,691,000 $ 380 Administrative costs depend on the number of customers WC has created capacity to support, not on the actual number of customers served. WC had 4,300 customers in 2016 and 4,200 customers in 2017. Revenue Effect of Growth Actual Units of = Output Sold in the Current Period Actual Units of Prior Output Sold in X Period the Prior Selling Period Price = Cost Effect of Growth for Variable Costs Units of Input Required to produce Current Output in the Prior Period Actual Units of Prior Input Used to X Period Produce Prior Input Period Output Price Cost Effect Of Growth For Fixed Costs Actual Units of capacity in Prior Period to Produce Current Period Output Actual Units of Capacity in the x Prior Period Prior Period Price per unit of capacity Revenue Effect Of Price- Recovery Current Period Selling Price - Prior Period Selling Price Current Period Units Sold Cost Effect Of Price- Recovery for Variable Costs Current Period Input Price - Prior Period Input Price X Units of Input required to produce Current Period's Output in the Prior Period Cost Effect Of Price- Recovery for Fixed Costs Current Period Price per Unit of Capacity Prior Period Price per Unit) x of Capacity Actual Units of Capacity on Prior Period to Produce Current Perlod's Output