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Evergreen Corp. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a
Evergreen Corp. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts: Sales $1,700,000 Cost of Goods Sold $935,000 Gross Profit $765,000 Operating Expenses ($150,000 is $523,700 fixed) Operating Income $241,300 Income Taxes (30% of operating $72,390 income) Net Income $168,910 If the concert season is slow due to poor weather, Evergreen estimates that sales could fall to as low as 60,000 T-shirts. What unit cost (rounded to nearest penny) did Evergreen use in budgeting the cost of goods sold for the year? If the concert season is slow due to poor weather, Robbins estimates that sales could fall to as low as 60,000 T-shirts. In a flexible budget for sales of 60,000 T-shirts, how much would Robbins budget for operating expenses
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