Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 10,000 T-shirts at $19 each in the coming year. Product costs include:

Direct materials per T-shirt$6.65Direct labor per T-shirt$1.33Variable overhead per T-shirt$0.57Total fixed factory overhead$40,000

Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $18,000.

Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 10,000 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 $40,000 Variable selling expense is the redemption of a coupon, which averages $0.95 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 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 Tota Per Unit $ $3. What if line 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}: 3. Variable product cost per unit $[:l b. Total variable cost per unit $l:l :3. Contribution margin per unit $[:l d. Contribution margin ratio :l e. Total xed expense for the year $:l