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Accounting for Decision Making
Tawanna Richard
ACC 501 Accounting Cost Systems and Cost Behavior
Trident University
Memorandum
From: Tawanna Richard /Accounting for Decision Making
To: To the Owner of the business
Date: 11/1/2015
Sub: Contribution Margin and Variable Cost Concept
Introduction
The Serious Reader Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classifies all books into five categories based on cost of acquisition and estimated sales price. The company also incurs some operating expenses.
The small online retailer is engaged in the business of selling of books. The company has
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