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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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