Tiger Pride produces two product lines: T-shirts and Sweatshirts.Product profitability is analyzed as follows:

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

Using an ABC system,next year's estimates show manufacturing overhead costs will total $227,300 for 46,000 T-shirts.If all other T-shirt costs and sales prices remain the same,the profitability that can be expected is ________.(Round the final answer to the nearest whole cent. )
A)$8.60 per t-shirt
B)$4.94 per t-shirt
C)$3.66 per t-shirt
D)($0.27)per t-shirt

Question

Tiger Pride produces two product lines: T-shirts and Sweatshirts.Product profitability is analyzed as follows:

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

Using an ABC system,next year's estimates show manufacturing overhead costs will total $227,300 for 46,000 T-shirts.If all other T-shirt costs and sales prices remain the same,the profitability that can be expected is ________.(Round the final answer to the nearest whole cent. )
A)$8.60 per t-shirt 
B)$4.94 per t-shirt 
C)$3.66 per t-shirt 
D)($0.27)per t-shirt

Quizplus · Accepted Answer

[46,000 ($18.00 - $1.60 - $4.30 - $3.50)] - $227,300 = $168,300 / 46,000 = $3.66

Tiger Pride Produces Two Product Lines: T-Shirts and Sweatshirts