Ask Question
25 May, 13:36

Perfect fit company sells hand-sewn shirts for $40 per shirt. it incurs monthly fixed costs of $5,000. the contribution margin ratio is calculated to be 20%. what is the variable cost per shirt?

+5
Answers (1)
  1. 25 May, 13:57
    0
    The variable cost per shirt is $32.

    Solution: Contribution margin ratio 20%

    Sales price per shirt $40 Contribution Margin = $40 x 20% = $8

    Variable cost per shirt $32

    Variable cost is a company expenses which varies on the production outputs.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Perfect fit company sells hand-sewn shirts for $40 per shirt. it incurs monthly fixed costs of $5,000. the contribution margin ratio is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers