Prepare an income statement in contribution margin format


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.

 

Tie Dyed

Embroidered

Sales units

15,000

8,000

Unit price

$ 12

$ 18

Variable manufacturing cost/unit

$  7

$   9

Sales commission (% sales)

10%

15%

Prepare an Income Statement in Contribution Margin format for Sarah's business. Calculate breakeven units and revenue for her total business.

Solution Preview :

Prepared by a verified Expert
Managerial Accounting: Prepare an income statement in contribution margin format
Reference No:- TGS01552187

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)