Shamrock Inc.plans to sell 3,000 Irish sweaters for $200 each in the coming year.Product costs include:
Variable selling expenses are $5 per sweater and fixed selling and administrative expenses total $12,000.
Required:
A.)Calculate the total variable cost per unit.
B.)Calculate the total fixed expenses for the year.
C.)Prepare a contribution margin income statement for Shamrock Inc.for the coming year.

Question

Shamrock Inc.plans to sell 3,000 Irish sweaters for $200 each in the coming year.Product costs include:
  Variable selling expenses are $5 per sweater and fixed selling and administrative expenses total $12,000.
Required: 
A.)Calculate the total variable cost per unit.
B.)Calculate the total fixed expenses for the year.
C.)Prepare a contribution margin income statement for Shamrock Inc.for the coming year.

Quizplus · Accepted Answer

The Answer of Shamrock Inc.plans to sell 3,000 Irish sweaters for $200 each in the coming year.Product costs include:
  Variable selling expenses are $5 per sweater and fixed selling and administrative expenses total $12,000.
Required: 
A.)Calculate the total variable cost per unit.
B.)Calculate the total fixed expenses for the year.
C.)Prepare a contribution margin income statement for Shamrock Inc.for the coming year.