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.

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.

Total Per Unit

Sales

Total variable expenses

Total contribution margin

Total fixed expense

Operating income