Aldos t-shirt shop only has three costs t-shirt cost rent

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Reference no: EM13370614

Aldo's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities cost.

Aldo's sells the T-shirt for $14.50 each. Management has prepared the following estimated cost information for next month:

At 8,000 At 10,000
T-shirts T-shirts
T-shirt cost $48,000 $60,000
Rent cost $3,600 $3,600
Utilities cost $6,800 $8,300
Assume that all of the activity levels mentioned in this problem are within the relevant range.
Required:

A. Evaluate what Aldo's should expect for total variable cost if 9,000 T-shirts are sold next month.

B. Prepare Aldo's contribution approach income statement for monthly sales volume level of 10,000 T-shirts.

Reference no: EM13370614

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