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testipw testipw
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A year ago
Arlo's T-shirt Shop only has three costs: T-shirt cost, rent cost on the shop, and utilities cost. Arlo's sells the T-shirts for $14.50 each. Management has prepared the following cost information for next month:
At 8,000 T-shirtsAt 10,000 T-shirts
T-shirt cost$ 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. Calculate Arlo's total variable cost if 9,000 T-shirts are sold next month.
b. Prepare Arlo's contribution format income statement if 10,000 T-shirts are sold.

Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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michaelfidanzamichaelfidanza
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