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Discuss the concept of fixed and variable cost

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Reference no: EM132633374

Assume that the Company intends to expand operations over the original scenario, and thus enters into a 20 years lease at $1,000/ month. It expects to increase the cost of its T-Shirts to $12/ shirt, and reduce variable costs by $1/ shirt. It also expects to earn a net income of $3/ unit. What is the required sales (in $ and units).

Problem 1: Discuss the concept of fixed and variable cost.

Problem 2: What are the weaknesses of CVP analysis

Reference no: EM132633374

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