Perfect fit company sells hand-sewn shirts for $40 per shirt. it incurs monthly fixed costs of $5,000. the contribution margin ratio is calculated to be 20%. what is the variable cost per shirt?

The variable cost per shirt is $32.
Solution:  Contribution margin ratio              20%  
                  Sales price per shirt                   $40                                                 Contribution Margin = $40 x 20% =$8                        
Variable cost per shirt                   $32
Variable cost is a company expenses which varies on the production outputs.

Answer (d) all of the above;