|
Harrell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $7 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $20 per shirt. |
|
Required: |
|
a. |
What are the total cost of shirts and cost per shirt if sales amount to 4,000, 4,500, 5,000, 5,500, or 6,000 |
|
b. |
Is the cost of T-shirts a fixed or a variable cost Explain your answer. |