The Button-Down Custom Co

question 141

Multiple Choice

The Button-Down Custom Co.sells hand-sewn shirts for $40 per shirt.It incurs monthly fixed costs of $7,000.The contribution margin ratio is calculated to be 30%.What is the variable cost per shirt?

• A) $28.00 per shirt
• B) $52.00 per shirt
• C) $40 per shirt
• D) $70.00 per shirt

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The process of producing goods through the use of machinery, tools, and labor, often on a large scale.

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An increase in the efficiency of production, often measured by the ratio of output to inputs over a specific period.

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