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Shamrock Inc. plans to sell 3,000 Irish sweaters for $200 each in the coming year. Product costs include: Direct materials per sweater $40 Direct labor

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

Direct materials per sweater $40

Direct labor per sweater 10

Variable overhead per sweater 15

Total fixed factory overhead $20,000.

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.

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

Shamrock Inc.

Contribution Margin Income Statement

For the Coming Year

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