Accounting homework problem
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Harrell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $7 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $20 per shirt. |
Required: |
a. | What are the total cost of shirts and cost per shirt if sales amount to 4,000, 4,500, 5,000, 5,500, or 6,000? |
b. | Is the cost of T-shirts a fixed or a variable cost? Explain your answer. |
- 11 years ago
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