WAM (Wear-A-Mask) T-Shirt company has two choices for manufacturing T-Shirts. Option A has fixed costs of...

 

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WAM (Wear-A-Mask) T-Shirt company has two choices for manufacturing T-Shirts. Option A has fixed costs of $15,000 and variable costs per unit of $10.00. Option B has fixed costs of $25,000 and variable costs per unit of $5.00. They believe they can seli their T-Shirts online for $20.00 per shirt. 1. At what volume are they indifferent between the two choices? units 2. If they can sell 2500 at $20.00 per shirt, how much profit will they make using Option A? $ Option B? $ WAM (Wear-A-Mask) T-Shirt company has two choices for manufacturing T-Shirts. Option A has fixed costs of $15,000 and variable costs per unit of $10.00. Option B has fixed costs of $25,000 and variable costs per unit of $5.00. They believe they can seli their T-Shirts online for $20.00 per shirt. 1. At what volume are they indifferent between the two choices? units 2. If they can sell 2500 at $20.00 per shirt, how much profit will they make using Option A? $ Option B? $

Answer rating: 100% (QA)

1 To find the volume at which WAM TShirt company is indifferent between the two choices we need to e... View the full answer