eBook Cornerstone Exercise 16.1 (Algorithmic) Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 17,000 T-shirts at $16 each in the coming year. Product costs include: Direct materials per T-shirt $5.60 Direct labor per T-shirt $1.12 Variable overhead per T-shirt $0.48 Total fixed factory overhead $41,000 Variable selling expense is the redemption of a coupon, which averages $0.80 per T-shirt; fixed selling and administrative expenses total $11,000. Required: 1. Calculate the following values: Round dollar amounts to the nearest cent and round ratio values to three decimal places (express the ratio as a decimal rather than a percentage). a. Variable product cost per unit $ 7.20 # b. Total variable cost per unit # C. Contribution margin per unit d. Contribution margin ratio e. Total fixed expense for the year 0.5 g 52000 g $ 2. Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If required, round your per unit answers to the nearest cent. Super-Tees Company Contribution-Margin-Based Operating Income Statement For the Coming Year Total Sales Os 272000 Per Unit s 16 - 7.20 Total variable expense 122400 Total contribution margin 149600 8.8 Total fixed expense 52000 Operating income me $ 97600