Exercise 11-11 Fixed versus variable cost behavior LO 11-1, 11-2 Moore Entertain
ID: 2444682 • Letter: E
Question
Exercise 11-11 Fixed versus variable cost behavior LO 11-1, 11-2
Moore Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $15 per shirt.
What are the total cost of shirts AND cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000?
Moore Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $15 per shirt.
Explanation / Answer
Sales No. Of shirts sold Cost of each shirt Cost per shirt 2000 133.33 1200 9 2500 166.67 1500 9 3000 200.00 1800 9 3500 233.33 2100 9 4000 266.67 2400 9
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