Harrell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost Rs.9 each .Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is Rs.15 per shirt. (15)
a. What are the total cost of shirts and cost pre shirt if sales amount to 2,000, 2,500, 3,000 3,500, or 4,000?
b. Is the cost of T-short a faxed or a variable cost?
c. Draw a graph and plot total cost and cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000.
d. Comment on Harrell’s likelihood of incurring a loss due to its operating activates.
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