“Part 5. CVP Problem

Sarahs T-Shirts
Sarahs T-Shirts business makes and sells
tie dyed and embroidered T-Shirts. Sales information for the last year is shown
below. During the year, Sarahs 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 Sarahs business. Calculate
breakeven units and revenue for hertotalbusiness. What is her margin of safety %?
Part 5. CVP ProblemSarahs T-Shirts Sarahs T-Shirts business makes and sells
tie dyed and embroidered T-Shirts. Sales information for the last year is shown
below. During the year, Sarahs fixed manufacturing costs were $40,000 and
fixed Selling and Administrative costs were $50,000.Tie DyedEmbroideredSales
units15,0008,000Unit
price$ 12$ 18Variable
manufacturing cost/unit$
7$
9Sales
commission (% sales)10%15%Prepare
an Income Statement in Contribution Margin format for Sarahs business. Calculate
breakeven units and revenue for hertotalbusiness. What is her margin of safety %?”