Super-Tees Company plans to sell 18,000 T-shirts at $23 each in the coming year. Product costs include:

Direct materials per T-shirt	$8.05
Direct labor per T-shirt	$1.61
Variable overhead per T-shirt	$0.69
Total fixed factory overhead	$45,000

Variable selling expense is the redemption of a coupon, which averages $1.15 per T-shirt; fixed selling and administrative expenses total $15,000.

Required:

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	$
b. Total variable cost per unit	$
c. Contribution margin per unit	$
d. Contribution margin ratio
e. Total fixed expense for the year	$

3. What if the per unit selling expense increased from $1.15 to $2.45? 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	$
b. Total variable cost per unit	$
c. Contribution margin per unit	$
d. Contribution margin ratio
e. Total fixed expense for the year	$

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 Sales Total variable expense Total contribution margin Total fixed expense 3 Operating income