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Baird Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $21 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 3,000, 3,500, 4,000, 4,500, or 5,000? b. Is the cost of T-shirts a fixed or a variable cost?

Baird Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $21 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 3,000, 3,500, 4,000, 4,500, or 5,000? b. Is the cost of T-shirts a fixed or a variable cost?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Baird Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $21 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 3,000, 3,500, 4,000, 4,500, or 5,000? b. Is the cost of T-shirts a fixed or a variable cost?
Transcribed Image Text:Baird Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $21 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 3,000, 3,500, 4,000, 4,500, or 5,000? b. Is the cost of T-shirts a fixed or a variable cost?
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