COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 18-21 The Savannah ShirtCompany makes two types of Thim:basic and printing on them. Custom him are are pain shirts without wing the basichins and then adding printing design. The company bay dod in various colors and makea the basic shinto in depannments. Curring and sewing The oompany uses a proceva corrinE term (weighed arengr methodo demmine the production eest of basic shirts. In Curring Department, direct material (eloth) are added arthe beginning of the process and ceevesien coets added evenly through process in the Sewing Depammem, ne dineen material added. The only additional material, thread, an indireor maneril because ikann be easily etaoed to the finihed added thoughout the process in the Sewing Department. finished buric shim are aald or are sent custom The Del Department reen printing The Desi creuerse om hin by adding scroen printing to the basia The department and then Print the design using p to four color Because these shire have the printing alled. cach onder the addional determined Koborder omring with each euroom onder considered asopurare 5. Assume the company seld only basic shins (no custom denignal and incurred fixed costs of A03 per a Calculate the contribution margin per unit, contribution margin ratio required salesin units to breik even, and required sales in dollars o brcakeen Determine the margin of in units and dollars. Graph Savannah the point, the ales evenue line, the fated cost line, de nul cost line, the operating loss area, and the operating income area. d. Suppose the Savannah Shirt Company wants eo earn an operating income of si 100 month Compute the required sales in uni and dollars to achieve this proli 6. The Savannah Shin Company is considering adding product line, doch shopping bag wih ausnom srenn printing that be sold togocery stores lfthe aument marke price of cloth hopping bap is 25 and the company desires anor profit of 40mi, what is the target cone The company etimales the fillproduct ofthe cloh bags wil be S060. Should the ompany manufacure the dech baph Why or why not? COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 18-21 The Savannah ShirtCompany makes two types of Thim:basic and printing on them. Custom him are are pain shirts without wing the basichins and then adding printing design. The company bay dod in various colors and makea the basic shinto in depannments. Curring and sewing The oompany uses a proceva corrinE term (weighed arengr methodo demmine the production eest of basic shirts. In Curring Department, direct material (eloth) are added arthe beginning of the process and ceevesien coets added evenly through process in the Sewing Depammem, ne dineen material added. The only additional material, thread, an indireor maneril because ikann be easily etaoed to the finihed added thoughout the process in the Sewing Department. finished buric shim are aald or are sent custom The Del Department reen printing The Desi creuerse om hin by adding scroen printing to the basia The department and then Print the design using p to four color Because these shire have the printing alled. cach onder the addional determined Koborder omring with each euroom onder considered asopurare 5. Assume the company seld only basic shins (no custom denignal and incurred fixed costs of A03 per a Calculate the contribution margin per unit, contribution margin ratio required salesin units to breik even, and required sales in dollars o brcakeen Determine the margin of in units and dollars. Graph Savannah the point, the ales evenue line, the fated cost line, de nul cost line, the operating loss area, and the operating income area. d. Suppose the Savannah Shirt Company wants eo earn an operating income of si 100 month Compute the required sales in uni and dollars to achieve this proli 6. The Savannah Shin Company is considering adding product line, doch shopping bag wih ausnom srenn printing that be sold togocery stores lfthe aument marke price of cloth hopping bap is 25 and the company desires anor profit of 40mi, what is the target cone The company etimales the fillproduct ofthe cloh bags wil be S060. Should the ompany manufacure the dech baph Why or why not