Alpha Apparel Inc. plans to sell 15,000 sweatshirts at $20 each in the upcoming year. Product costs include: Cost Type Cost Direct materials per sweatshirt $7.00 $1.50 Variable overhead per sweatshirt $0.75 $50,000 Direct labor per sweatshirt Total fixed factory overhead Variable selling expense includes a promotional discount averaging $1.25 per sweatshirt. Fixed selling and administrative expenses total $20,000. Calculate the following values: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio

Alpha Apparel Inc. plans to sell 15,000 sweatshirts at $20 each in the upcoming year. Product costs include: Cost Type Cost Direct materials per sweatshirt $7.00 $1.50 Variable overhead per sweatshirt $0.75 $50,000 Direct labor per sweatshirt Total fixed factory overhead Variable selling expense includes a promotional discount averaging $1.25 per sweatshirt. Fixed selling and administrative expenses total $20,000. Calculate the following values: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PB: Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and...

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