1. Scooby's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities cost. Arlo's sells the T-shirts for $14.50 each. Management has prepared the following cost information for next month

At 8,000 At 10,000

T-shirt T-shirt

T-shirt cost $48,000 60,000

Rent Cost $3,000 $3,600

Utillities Cost $6,800 $ 8,300

Assume that all the activity levels mentioned in this problem are within the relevant range.

Required: a. Estimate Scooby's total variable cost if 9,000 T-shirts are sold next month.

b. Estimate Scoobys contribution margin if 10,000 T-shirts are sold.