Question
Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 13,000 T-shirts at $24 each in the coming year. Product costs include:
Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 13,000 T-shirts at $24 each in the coming year. Product costs include: Direct materials per T-shirt $8.40 Direct labor per T-shirt $1.68 Variable overhead per T-shirt Total fixed factory overhead $0.72 $39,000 Variable selling expense is the redemption of a coupon, which averages $1.20 per T-shirt; fixed selling and administrative expenses total $18,000. 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 $ $ 00000
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