Down jackets has three types of costs jacket cost factory

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Reference no: EM13596803

Down jackets has three types of costs: jacket cost, factory rent cost, and utilities cost. This company sells its jackets for $16.50 each. Management has prepared the following estimated cost information for next month under two different sales levels.

At 10,000 jackets At 12,000 jackets
Jacket cost $80,000 $96,000
Rent cost 6,000 6,000
Utilities cost 8,400 9,900

Required
1. Compute what the company should expect for total variable cost if 11,000 jackets are sold next month.
2. Prepare its contribution format income statement for a monthly sales volume of 12,000 jackets.

Reference no: EM13596803

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