Arlo'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:
Assume that all of the activity levels mentioned in this problem are within the relevant range.
Required:
a.Calculate Arlo's total variable cost if 9,000 T-shirts are sold next month.
b.Prepare Arlo's contribution format income statement if 10,000 T-shirts are sold.

Question

Arlo'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:
  Assume that all of the activity levels mentioned in this problem are within the relevant range.
Required:
a.Calculate Arlo's total variable cost if 9,000 T-shirts are sold next month.
b.Prepare Arlo's contribution format income statement if 10,000 T-shirts are sold.

Quizplus · Accepted Answer

The Answer of Arlo'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:
  Assume that all of the activity levels mentioned in this problem are within the relevant range.
Required:
a.Calculate Arlo's total variable cost if 9,000 T-shirts are sold next month.
b.Prepare Arlo's contribution format income statement if 10,000 T-shirts are sold.

Arlo's T-Shirt Shop Only Has Three Costs