Accounting for Decision Making Tawanna Richard ACC 501 Accounting Cost Systems and Cost Behavior Trident University Memorandum From: Tawanna Richard /Accounting for Decision Making To: To the Owner of the business Date: 11/1/2015 Sub: Contrib

Accounting for Decision Making 

Tawanna Richard

ACC 501 Accounting Cost Systems and Cost Behavior

Trident University

Memorandum

From: Tawanna Richard /Accounting for Decision Making

To: To the Owner of the business 

Date: 11/1/2015

Sub: Contribution Margin and Variable Cost Concept

 

Introduction

The Serious Reader Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classifies all books into five categories based on cost of acquisition and estimated sales price. The company also incurs some operating expenses.

The small online retailer is engaged in the business of selling of books. The company has