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.