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Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 18,000 T-shirts at $18 each in the coming year. Product costs include:
Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 18,000 T-shirts at $18 each in the coming year. Product costs include: Direct materials per T-shirt Direct labor per T-shirt Variable overhead per T-shirt $6.30 $1.26 $0.54 $41,000 Total fixed factory overhead Variable selling expense is the redemption of a coupon, which averages $0.90 per T-shirt; fixed selling and administrative expenses total $14,000. 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 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 1000
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