Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 15,000 T-shirts at $19 each in the coming year. Product costs include:

Direct materials per T-shirt	$6.65
Direct labor per T-shirt	$1.33
Variable overhead per T-shirt	$0.57
Total fixed factory overhead	$35,000

Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $10,000.

Required:

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 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 3. What if the per unit selling expense increased from $0.95 to $2.05? 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