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-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 the activity levels mentioned in this problem are within the relevant range.

Required:

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

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