Choice Creations, Inc. sells hand sewn shirts at $ 44.00 per shirt. It incurs monthly fixed costs of $ 6 comma 000. The contribution margin ratio is calculated to be 30%. What is the variable cost per shirt? (Round any intermediate calculations and your final answer to two decimal places.)

$30.80

Explanation:

According to the situation, the solution is as follows:

The variable cost per shirt is

Since the selling price per shirt is $44

And, the contribution margin ratio is 30%

So, the variable cost margin ratio is 70%

Now the variable cost per shirt is

= Selling price per shirt × variable cost margin ratio

= $44 × 70%

= $30.80

Hence, the variable cost per shirt is $30.80

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.