The Perfect Fit Company sells hand sewn shirts at $58
00 per shirt. It incurs monthly fixed costs of $8,000. 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.)
A) $40.60 per shirt
B) $75.40 per shirt
C) $58.00 per shirt
D) $17.40 per shirt
A .A)
Contribution margin ratio 30%
Sales price per shirt $58.00
Contribution margin = $58.00 x 30% 17.40
Variable cost per shirt $40.60
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