Arlos T-shirt shop pnly has four costs: tshirt cost, rent cost on the shop, ship

Question

Arlos T-shirt shop pnly has four costs: tshirt cost, rent cost on the shop, shipping cost, and utilites cost. Arlos sells the tshirt for $21 each. Management has prepared the following estimated cost information for nest month: at 10,000 tshirt cost: $45000, Rent cost: $27000, shipping cost: $28000, Utilities: $28000 At 20000. Tshirt cost: $90000, Rent cost $27000, Shipping cost $38000, Utilities cost $33000 A) calculate what arlos should expect for total variable cost if 9000 tshrts are sold next month(iclude purely variable costs and the variable portion of mixed costs). B) Prepare Arlos contribution approach income state,ment for monthly sales volume of 21000 tshirts.

Explanation / Answer

1)

T-shirt cost = {($90,000 - $45,000)/10000}

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