cost accounting

Project Description:

sarah’s t-shirts
sarah’s t-shirts business makes and sells tie dyed and embroidered t-shirts. sales information for the last year is shown below. during the year, sarah’s fixed manufacturing costs were $40,000 and fixed selling and administrative costs were $50,000.

tie dyed embroidered
sales units 15,000 8,000
unit price $ 12 $ 18
variable manufacturing cost/unit $ 7 $ 9
sales commission (% sales) 10% 15%

prepare an income statement in contribution margin format for sarah’s business. calculate breakeven units and revenue for her total business. what is her margin of safety %? how many units would sarah have to sell to earn a 10% profit margin?
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Price Type: Negotiable

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