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Your company sells customized T-shirts for $16. The customer has a choice of decals for the shirt. The company purchases the shirts for $7 and

Your company sells customized T-shirts for $16. The customer has a choice of decals for the shirt. The company purchases the shirts for $7 and the decal for $1. Rent for the store is $2,000 per month. Required: 1. Calculate the breakeven point in (a) units and (b) dollars. 2. Determine the (a) unit volume and dollar volume required to earn a target profit of $3,000 and (b) after-tax profit of $3,000 when the tax rate is 40%. 3. Determine the dollar volume required to earn a 10% return on sales. 4. Prepare the contribution margin format income statement

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