Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Variable costs. Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 11,000 T-shirts at $19 each in the coming year. Product costs include: Direct

image text in transcribed

Variable costs. Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 11,000 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 $36,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt: fixed selling and administrative expenses total $13,000. 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 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Cost Management

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

9781305147102, 1285751787, 1305147103, 978-1285751788

More Books

Students also viewed these Accounting questions

Question

Find the median for the set of measurements 2, 9, 11, 5, 6.

Answered: 1 week ago