Variable Costs, Contribution Margin, Contribution Margin Ratio

Super-Tees Company plans to sell 19,000 T-shirts at $23 each in the coming year. Product costs include:

Direct materials per T-shirt	$8.05
Direct labor per T-shirt	$1.61
Variable overhead per T-shirt	$0.69
Total fixed factory overhead	$40,000

Variable selling expense is the redemption of a coupon, which averages $1.15 per T-shirt; fixed selling and administrative expenses total $11,000.

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 8a419e067ff4ff1_1
b. Total variable cost per unit	$fill in the blank 8a419e067ff4ff1_2
c. Contribution margin per unit	$fill in the blank 8a419e067ff4ff1_3
d. Contribution margin ratio	fill in the blank 8a419e067ff4ff1_4
e. Total fixed expense for the year	$fill in the blank 8a419e067ff4ff1_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 $1.15 to $2.45? 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 f017a2059020fc3_1
b. Total variable cost per unit	$fill in the blank f017a2059020fc3_2
c. Contribution margin per unit	$fill in the blank f017a2059020fc3_3
d. Contribution margin ratio	fill in the blank f017a2059020fc3_4
e. Total fixed expense for the year	$fill in the blank f017a2059020fc3_5