Question: The attached document contains information needed to create an income statement. Part 5. CVP Problem Sarah's T-Shirts Sarah's T-Shirts business makes and sells tie dyed
The attached document contains information needed to create an income statement.
Part 5. CVP Problem 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. Sales units Unit price Variable manufacturing cost/unit Sales commission (% sales) Tie Dyed 15,000 $ 12 Embroidered 8,000 $ 18 $ 7 $ 9 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 %
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