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.