Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 18,000 T-shirts at $21 each in the coming year. Product costs include: Direct materials per T-shirt $7.35 Direct labor per T-shirt $1.47 Variable overhead per T-shirt $0.63 Total fixed factory overhead $45,000 Variable selling expense is the redemption of a coupon, which averages $1.05 per T-shirt; fixed selling and administrative expenses total $17,000.

3. What if the per unit selling expense increased from $1.05 to $2.25? 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	$