T-shirt business needs to understand costs to make a profit. Each month, she pays rent and utilities, which are considered __________
, while the cost of fabric and ink per shirt are considered __________.
o determine how much she spends producing each shirt, she calculates her __________, which includes the cost of materials and labor. Sarah also tracks her __________, which are expenses she must cover regardless of how many shirts she sells. By figuring out her __________, she knows how many shirts she must sell to cover all her costs. Finally, Sarah analyzes her profit margin to understand how much profit she makes per shirt sold after covering variable costs.