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   Variable Costs, Contribution Margin, Contribution Margin Ratio

   Super-Tees Company plans to sell 16,000 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	$40,000

   Variable selling expense is the redemption of a coupon, which averages $0.80 per T-shirt; fixed selling and administrative expenses total $19,000.

   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	$fill in the blank bed2ecf9b02b03f_1
   b. Total variable cost per unit	$fill in the blank bed2ecf9b02b03f_2
   c. Contribution margin per unit	$fill in the blank bed2ecf9b02b03f_3
   d. Contribution margin ratio	fill in the blank bed2ecf9b02b03f_4
   e. Total fixed expense for the year	$fill in the blank bed2ecf9b02b03f_5

   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	Per Unit
   SalesTotal contribution marginTotal fixed expenseTotal variable expense	$- Select -	$- Select -
   SalesTotal contribution marginTotal fixed expenseTotal variable expense	- Select -	- Select -
   SalesTotal contribution marginTotal fixed expenseTotal variable expense	$- Select -	$- Select -
   SalesTotal contribution marginTotal fixed expenseTotal variable expense	- Select -
   Operating incomeOperating lossSalesTotal contribution margin	$- Select -

   3. What if the per unit selling expense increased from $0.80 to $1.75? Calculate new values for the following: Round dollar amounts to the nearest cent and round ratio values to four decimal places (express the ratio as a decimal rather than a percentage):

   a. Variable product cost per unit	$fill in the blank b0bff80c4077fdc_1
   b. Total variable cost per unit	$fill in the blank b0bff80c4077fdc_2
   c. Contribution margin per unit	$fill in the blank b0bff80c4077fdc_3
   d. Contribution margin ratio	fill in the blank b0bff80c4077fdc_4
   e. Total fixed expense for the year	$fill in the blank b0bff80c4077fdc_5