Perfect Fit Company Sells Hand-Sewn Shirts for $55 Per Shirt

question 32

Multiple Choice

Perfect Fit Company sells hand-sewn shirts for $55 per shirt.It incurs monthly fixed costs of $7000.The contribution margin ratio is calculated to be 20%.What is the variable cost per shirt?

• A) $70.00 per shirt
• B) $55 per shirt
• C) $44.00 per shirt
• D) $66.00 per shirt

---

Definitions:

Industry Factors

Various external elements such as technology, regulation, and competition that influence a company's performance in its sector.

Primary Packaging

The first layer of packaging directly in contact with the product, designed to protect and preserve, as well as provide consumer information.

Shipping Container

A large, standardized metal box used for the efficient, safe, and secure transport of goods over long distances, often by sea or land.

Dental Floss Dispenser

A device designed to hold and dispense dental floss, often facilitating ease of use and encouraging better dental hygiene practices.