Super-Tees Company plans to sell 10,000 T-shirts at $20 each in the coming year. Product costs include:

Direct materials per T-shirt	$7.00
Direct labor per T-shirt	$1.40
Variable overhead per T-shirt	$0.60
Total fixed factory overhead	$39,000

Variable selling expense is the redemption of a coupon, which averages $1.00 per T-shirt; fixed selling and administrative expenses total $18,000.

Required:

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1. Calculate the following values: Round dollar amounts to the nearest cent and round ratio values to three decimal places (express the ratio as a decimal rather than a percentage).

a. Variable product cost per unit	$fill in the blank f9ac20031013026_1
b. Total variable cost per unit	$fill in the blank f9ac20031013026_2
c. Contribution margin per unit	$fill in the blank f9ac20031013026_3
d. Contribution margin ratio	fill in the blank f9ac20031013026_4
e. Total fixed expense for the year	$fill in the blank f9ac20031013026_5

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2. Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If required, round your per unit answers to the nearest cent.

Super-Tees Company Contribution-Margin-Based Operating Income Statement For the Coming Year

	Total	Per Unit
SalesTotal contribution marginTotal fixed expenseTotal variable expense	$- Select -	$- Select -
SalesTotal contribution marginTotal fixed expenseTotal variable expense	- Select -	- Select -
SalesTotal contribution marginTotal fixed expenseTotal variable expense	$- Select -	$- Select -
SalesTotal contribution marginTotal fixed expenseTotal variable expense	- Select -
Operating incomeOperating lossSalesTotal contribution margin	$- Select -

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3. What if the per unit selling expense increased from $1.00 to $2.15? Calculate new values for the following: Round dollar amounts to the nearest cent and round ratio values to four decimal places (express the ratio as a decimal rather than a percentage):

a. Variable product cost per unit	$fill in the blank 26ca7c041fabffa_1
b. Total variable cost per unit	$fill in the blank 26ca7c041fabffa_2
c. Contribution margin per unit	$fill in the blank 26ca7c041fabffa_3
d. Contribution margin ratio	fill in the blank 26ca7c041fabffa_4
e. Total fixed expense for the year	$fill in the blank 26ca7c041fabffa_5