COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 18-21 The makes ewe rypes of and Basic are plain shirts without anr arm on them. Custom shins are wing the barichirm and then adding The company bun dod invarious colors and make the basic shirt in depannment. Carting and sewing The oompany uses a proceu conting (weighted methodo demmine production of the basic shirts. In the Carring Department, direct marerial (eloth) are added the beginning of the peace and conversion coets arr added evenly through process. In Sewing Depammen, ne dinect materials added. The only additional material, thread. an indirea mannil because kann be easily eraoed to the finished added evenly thoughout the process in the Sewing Department The finshond shim aald leers or are sent the Custom Design Department reen printing The Departmeer creerse om hins by adding acroen printing to the bank The department and then print the design p to four colon. Because these shires have thr using ournom printing alled, ender, the addional determined esingkob order oorring with euch 5. Assume he company seld only basic shins (no austom designsl and incurred fixed cores of SIAo3 per month. a Calculate the contribution margin per unit, contribution margin ratio, required salesin units to break even, and required sale in dollars o becak even Determine the margin of safory in units and dollars Graph Savannah ShrtCompany'sCVP the point, the ales revenue line, the fated cost line, nul cow line, the operating loss area, and the operating income area. d. Suppose the Savannah Shirt Company wants eo earn an operating income of sil00 month. Compute the required sales in uni and dollars to achieve this profit goal. 6. The Savannah Shirt Company is considering adding anew product line, a doch shopping bag wih ausnom creen printing that will be sold togrocery stores. the oament marker price of doth hopping bag is S1.25 and the oompuny deires anot profit of 40N, what is the target cot The company estimates the fillproduct cost ofdhe doch bag walbe S060 Should the company manufacture the deth bapl Why or why not? COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 18-21 The makes ewe rypes of and Basic are plain shirts without anr arm on them. Custom shins are wing the barichirm and then adding The company bun dod invarious colors and make the basic shirt in depannment. Carting and sewing The oompany uses a proceu conting (weighted methodo demmine production of the basic shirts. In the Carring Department, direct marerial (eloth) are added the beginning of the peace and conversion coets arr added evenly through process. In Sewing Depammen, ne dinect materials added. The only additional material, thread. an indirea mannil because kann be easily eraoed to the finished added evenly thoughout the process in the Sewing Department The finshond shim aald leers or are sent the Custom Design Department reen printing The Departmeer creerse om hins by adding acroen printing to the bank The department and then print the design p to four colon. Because these shires have thr using ournom printing alled, ender, the addional determined esingkob order oorring with euch 5. Assume he company seld only basic shins (no austom designsl and incurred fixed cores of SIAo3 per month. a Calculate the contribution margin per unit, contribution margin ratio, required salesin units to break even, and required sale in dollars o becak even Determine the margin of safory in units and dollars Graph Savannah ShrtCompany'sCVP the point, the ales revenue line, the fated cost line, nul cow line, the operating loss area, and the operating income area. d. Suppose the Savannah Shirt Company wants eo earn an operating income of sil00 month. Compute the required sales in uni and dollars to achieve this profit goal. 6. The Savannah Shirt Company is considering adding anew product line, a doch shopping bag wih ausnom creen printing that will be sold togrocery stores. the oament marker price of doth hopping bag is S1.25 and the oompuny deires anot profit of 40N, what is the target cot The company estimates the fillproduct cost ofdhe doch bag walbe S060 Should the company manufacture the deth bapl Why or why not
