1. Variable Costs, Contribution Margin, Contribution Margin Ratio

   Super-Tees Company plans to sell 11,000 T-shirts at $19 each in the coming year. Product costs include:

   Direct materials per T-shirt	$6.65
   Direct labor per T-shirt	$1.33
   Variable overhead per T-shirt	$0.57
   Total fixed factory overhead	$37,000

   Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $16,000.

   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	$
   b. Total variable cost per unit	$
   c. Contribution margin per unit	$
   d. Contribution margin ratio
   e. Total fixed expense for the year	$

   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
   	$	$
   	$	$
   	$

   3. What if the per unit selling expense increased from $0.95 to $2.05? 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	$
   b. Total variable cost per unit	$
   c. Contribution margin per unit	$
   d. Contribution margin ratio
   e. Total fixed expense for the year	$