Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include: Direct materials per T-shirt $6.65 Direct labor per T-shirt $1.33 Variable overhead per T-shirt $0.57 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.
Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include: Direct materials per T-shirt $6.65 Direct labor per T-shirt $1.33 Variable overhead per T-shirt $0.57 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
Related questions
Question
![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
b. Total variable cost per unit
c. Contribution margin per unit
d. Contribution margin ratio
e. Total fixed expense for the year
$
$
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a4597e-3d99-4c20-8113-3401a2a6115b%2F436dbc47-cd0e-40c5-8e68-cc8d9b0d3e91%2F87lw2nng_processed.png&w=3840&q=75)
Transcribed Image Text: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
b. Total variable cost per unit
c. Contribution margin per unit
d. Contribution margin ratio
e. Total fixed expense for the year
$
$
$
$
![Variable Costs, Contribution Margin, Contribution Margin Ratio
Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include:
Direct materials per T-shirt
$6.65
$1.33
Direct labor per T-shirt
Variable overhead per T-shirt
$0.57
Total fixed factory overhead
$43,000
Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a4597e-3d99-4c20-8113-3401a2a6115b%2F436dbc47-cd0e-40c5-8e68-cc8d9b0d3e91%2F9hgfw9_processed.png&w=3840&q=75)
Transcribed Image Text:Variable Costs, Contribution Margin, Contribution Margin Ratio
Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include:
Direct materials per T-shirt
$6.65
$1.33
Direct labor per T-shirt
Variable overhead per T-shirt
$0.57
Total fixed factory overhead
$43,000
Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.
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