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Sheridan sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $20.00 each, and variable costs were $10.00 per
Sheridan sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $20.00 each, and variable costs were $10.00 per shirt. At this cost structure, the breakeven point was 31,000 shirts. However, the company actually earned $16,200 in net income. This year, the company is increasing its price to $22 per shirt. Variable costs per shirt will increase by 20%, and fixed expenses will increase by $20,000. The tax rate will remain at 40% Prepare a contribution format income statement for last year. (Round per unit computations to 2 decimal places, eg. 0.38.) Sheridan Contribution Income Statement Total Per unit $ $ $
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