Sunland sells T$-$shirts imprinted with high school names and logos$.$ Last year the shirts sold for $$28\mathrm{.}00$ each, and variable costs were $$10\mathrm{.}00$ per shirt. At this cost structure, the breakeven point was $22,000$ shirts. However, the company actually earned $$27,000$ in ne income.

This year, the company is increasing its price to $$30$ per shirt. Variable costs per shirt will increase by $20\%,$ and fixed expenses will increase by $$36,000.$ The tax rate will remain at $40\%.$

$($a$)$

Your answer is partially correct.

Prepare a contribution format income statement for last year. $($Round per unit computations to $2$ decimal places, e$.$g$.0\mathrm{.}38.)$

Total

Per unit

Contribution Margin

Income Tax