Reference no: EM131194893
Harrell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost Rs.9 each .Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is Rs.15 per shirt. (15)
Required:
a. What are the total cost of shirts and cost pre shirt if sales amount to 2,000, 2,500, 3,000 3,500, or 4,000?
b. Is the cost of T-short a faxed or a variable cost?
c. Draw a graph and plot total cost and cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000.
d. Comment on Harrell's likelihood of incurring a loss due to its operating activates.
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