DJ's T-Shirt Factory Contribution Margin

question 7

Multiple Choice

DJ's T-Shirt Factory Contribution Margin

The managerial accountant at DJ's T-Shirt Factory reported the price per shirt is $24.The only variable cost is $15 per shirt.The managerial accountant also reported that the sales goals were increased to 1,000 shirts during the next quarter.First,compute the unit contribution margin per shirt.If fixed expenses are $8,000,what is the forecasted operating income if 1,000 shirts are sold in the next quarter?

• A)6;$700
• B)7;$800
• C)8;$900
• D)9;$1,000

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Definitions:

Orange Grower

An individual or business involved in the cultivation of orange trees for the purpose of fruit production.

Production Function

A mathematical relationship describing the maximum output that can be produced with a given set of inputs, such as labour and capital, under certain conditions.

Production Function

An economic model expressing the relationship between inputs used in production and the resulting output, illustrating how input changes affect output levels.

Production Function

A mathematical model that describes the relationship between the inputs used in production and the output of goods or services produced.