Your best friend Marie has decided that she is going to start her own business selling...

 

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Your best friend Marie has decided that she is going to start her own business selling custom T-shirts. She's had some help from her mother, a CPA, and come up with the following information: Selling price per T-shirt $25 Variable cost per T-shirt $15 Her mother suggested that she use $3,000 as an estimate of fixed costs. At that point, Marie was confused and decided that she would ask you to explain a few things since you were taking a mangerial accounting course. In your post, answer the following questions: 1. What are variable and fixed costs? Give her an example of each that she would have with the T-shirt business. 2. How many T-shirts will she have to sell to break even? (Include what it means to break even.) 3. If she wants to earn $1,000 (target profit), how many T-shirts will she have to sell? Your best friend Marie has decided that she is going to start her own business selling custom T-shirts. She's had some help from her mother, a CPA, and come up with the following information: Selling price per T-shirt $25 Variable cost per T-shirt $15 Her mother suggested that she use $3,000 as an estimate of fixed costs. At that point, Marie was confused and decided that she would ask you to explain a few things since you were taking a mangerial accounting course. In your post, answer the following questions: 1. What are variable and fixed costs? Give her an example of each that she would have with the T-shirt business. 2. How many T-shirts will she have to sell to break even? (Include what it means to break even.) 3. If she wants to earn $1,000 (target profit), how many T-shirts will she have to sell?