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Identify at least two fixed costs that will not change

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Question: Johnny Cupcakes, launched by entrepreneur John Earle, produces t-shirts in unique styles and limited quantities. Selling prices typically range from $40 per shirt to $70 per shirt.

Required: 1. Identify at least two fixed costs that will not change regardless of how many t-shirts Johnny Cupcakes produces.

2. How could overly optimistic sales estimates potentially hurt John Earle's business?

3. Explain how cost-volume-profit analysis can help John Earle manage Johnny Cupcakes.

Reference no: EM131539121

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