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COST PER T-SHIRT DIRECT MATERIALS COST BEHAVIOR (FIXED & VARIABLE) VARIABLE CASES COST PER CASE 24 24 24 24 $6.00 120.00 $41.00 121.20 $0.02 $5.00

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COST PER T-SHIRT DIRECT MATERIALS COST BEHAVIOR (FIXED & VARIABLE) VARIABLE CASES COST PER CASE 24 24 24 24 $6.00 120.00 $41.00 121.20 $0.02 $5.00 $1.72 $5.05 VINYL PAPER T-SHIRT BOX PACKAGING ZIP BAG PACKAGING VARIABLE VARIABLE VARIABLE DEPARTMENT COST BEHAVIOR | TIME PER T-SHIRT | SHIRT LABOR RATE PER HOUR DL COST PER CASE (24) $150 VARIABLE PRINTING (DESIGN IN FRONT OF THE T-SHIRT) 1.5 hours $12.50 PRINTING 1 hour $13.00 $312 VARIABLE DESIGN AT THE BACK OF THE T-SHIRT) Differential Analysis Lease Machine (Alt. 1) or Sell Machine (Alt. 2) January 12, 2014 Lease Machine (Alternative 1) Sell Machine (Alternative 2) Differential Effect on Income (Alternative 2) Revenues 243000 231000 12000 11550 5350 Costs -16900 Income (Loss) 226100 219450 -6650 Determine the contribution margin rate per case.] Month February March April May June Fixed Cost $528 $300 $500 $552 $564 Variable Cost $132 $240 $220 $138 $141 COST PER T-SHIRT DIRECT MATERIALS COST BEHAVIOR (FIXED & VARIABLE) VARIABLE CASES COST PER CASE 24 24 24 24 $6.00 120.00 $41.00 121.20 $0.02 $5.00 $1.72 $5.05 VINYL PAPER T-SHIRT BOX PACKAGING ZIP BAG PACKAGING VARIABLE VARIABLE VARIABLE DEPARTMENT COST BEHAVIOR | TIME PER T-SHIRT | SHIRT LABOR RATE PER HOUR DL COST PER CASE (24) $150 VARIABLE PRINTING (DESIGN IN FRONT OF THE T-SHIRT) 1.5 hours $12.50 PRINTING 1 hour $13.00 $312 VARIABLE DESIGN AT THE BACK OF THE T-SHIRT) Differential Analysis Lease Machine (Alt. 1) or Sell Machine (Alt. 2) January 12, 2014 Lease Machine (Alternative 1) Sell Machine (Alternative 2) Differential Effect on Income (Alternative 2) Revenues 243000 231000 12000 11550 5350 Costs -16900 Income (Loss) 226100 219450 -6650 Determine the contribution margin rate per case.] Month February March April May June Fixed Cost $528 $300 $500 $552 $564 Variable Cost $132 $240 $220 $138 $141

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