Problem 4-2

Shamrock Inc. plans to sell 3,000 Irish sweaters for $200 each in the coming year. Product costs include:

Variable selling expenses are $5 per sweater and fixed selling and administrative expenses total $12,000.

Required:

A. Calculate the total variable cost per unit. $

B. Calculate the total fixed expenses for the year. $

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C. Prepare a contribution margin income statement for Shamrock Inc. for the coming year.

Shamrock Inc.
Contribution Margin Income Statement
For the Coming Year