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Compute the total variable cost per unit

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Reference no: EM132699322

Question - Great-Garments Company plans to sell 9,000 T-shirts at $15 each in the coming year. Product costs include:

Direct materials per T-shirt $5.00

Direct labour per T-shirt $1.00

Variable overhead per T-shirt $0.65

Total ?xed factory overhead $44,000

Variable selling expense is the redemption of a coupon, which averages $0.85 per T-shirt; ?xed selling and administrative expenses total $19,000.

Required -

a. Compute the total variable cost per unit.

b. Compute the contribution margin per unit.

c. Compute the contribution margin ratio

d. Compute the break-even point in units (Q).

e. Compute the break- Even point in sales.

f. Compute the required sales in units (Q) to make a profit of $12,000.

g. Compute the required sales value ($) to make a profit of $12,000.

h. Compute the contribution-margin-based income: statement for Great Garment Company for the coming year.

Reference no: EM132699322

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