In Class Assignment Chapter 19 Blane Company has the following data: Total sales $800,000 Total variable costs $300,000 Fixed costs $200,000 Units sold 50,000 units Total Sales Total Variable Costs Contribution Margin Fixed Costs Operating Income 2 The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold. (a) Ink used for screen printing (a) Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used c) Thread d) Electricity costs of $0.038 per kilowatt hour le) Janitorial costs of $4.000 per month f) Advertising costs of $12,000 per month (s) Accounting salaries th) Color dyes for producing different colors of T-shirts Salary of the production supervisor Straight line depreciation on sewing machines k) Salaries of internal pattern designers Hourly wages of sewing machine operators (m) Property taxes on factory, building, and equipment In) Cotton and polyester doth (o) Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.) a) b) il 6) 0 m) d el f ol In Class Assignment Chapter 19 Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from operations is $150,000). Determine the (a) unit contribution margin (b) contribution margin ratio, and (e) fixed costs per unit at production of 25,000 units. Sales Variable Costs Contribution Margin Fixed Costs Income from Operations 0 0 a) b Racer Industries has foued costs of $900,000. Selling price per unit is $250, and variable cost per unit is $130. Required: (a) How many units must Racer sell in order to break even? (b) How many units must Racer sell in order to earn a profit of $480,000? (c) A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $7.200. How many more units must be sold to cover this Cost? al b) c)