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 $50,000.
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Tie Dyed
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Embroidered
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Sales units
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15,000
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8,000
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Unit price
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$ 12
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$ 18
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Variable manufacturing cost/unit
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$ 7
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$ 9
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Sales commission (% sales)
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10%
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15%
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Prepare an Income Statement in Contribution Margin format for Sarah's business.Calculate breakeven units and revenue for her totalbusiness.