In Rachel’s t-shirt shop, what is her fixed cost contribution per unit if she sells t-shirts for $20 and buys them for $10 with a monthly rent of $100?

To determine Rachel's fixed cost contribution per unit, we need to first clarify the components of her costs and revenues. Rachel sells each t-shirt for $20, and her cost to purchase each t-shirt is $10. This means she has a variable profit of $10 per t-shirt sold (selling price minus variable cost).

However, to find the fixed cost contribution per unit, we consider Rachel's fixed costs. Rachel's monthly rent is $100, which represents a fixed cost that does not change with the number of t-shirts she sells.

To incorporate this into the contribution margin per unit, we need to find out how many shirts she sells in a month. However, since the question provides no specific monthly sales volume, we focus solely on the understanding that the fixed cost contribution is derived from the fixed costs relative to her sales.

The fixed cost per unit is typically calculated as total fixed costs divided by the total number of units sold; however, since we are not given the sales volume, we simply identify that each t-shirt sold contributes to covering the fixed costs when the variable profit (the $10 profit per shirt) exceeds the fixed cost allocated per unit sold.

In this scenario, since one needs to factor in how much of the revenue