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prepared the 8. Oreo's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities cost. Oreo's sells the T-shirt for
prepared the 8. Oreo's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities cost. Oreo's sells the T-shirt for $14.50 each. Management has following estimated cost information for next month: At 8,000 At 10,000 T-shirts T-shirts T-shirt cost $48,000 $60,000 Rent cost $3,600 $3,600 Utilities cost $6,800 $8,300 Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: a. Calculate what Oreo's should expect for total variable cost if 9,000 T-shirts are sold next month. b. Prepare Oreo's contribution approach income statement for a monthly sales volume level of 10,000 T-shirts
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