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