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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.
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 Sarah's business. Calculate breakeven units and revenue for her total business.
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