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Jennifer, a Raptor fan, plans to make Tshirts for the basketball fans. Expected sales 300 units Selling price $40 per cap Direct material 59 per
Jennifer, a Raptor fan, plans to make Tshirts for the basketball fans. Expected sales 300 units Selling price $40 per cap Direct material 59 per cap Direct labour $4 per cap Variable overhead 53 per cap Variable selling commission $2 per cap Fixed sell. & admin. expense $800 total Fixed factory overhead $1,000 total Using the above information answer the following questions. What is the total variable cost per unit? 12000 What is the total fixed costs? 1447 What is the contribution margin per unit? 56 What is the contribution margin ratio? HINT: Remember the entry rules for percentages. 40 What is the break-even number of T-shirts? What is the variable cost ratio? HINT: Remember the entry rules for percentages. What is the break-even in sales dollars? The company would like to earn a target income of $3.060. How many T-shirts will the company have to sell in order to earn this target income? The company would like to earn a target income of $3,060. The total sales revenue required to earn an income this target income is $_
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