CLASS QUESTION 3

Sales 2,300,000.00
Cost of sales 1,380,000.00
Gross Profit 920,000.00
Selling & Admin expenses 575,000.00
Income 345,000.00

Cost of Sales 1,380,000.00

Selling & Admin Expenses 575,000.00
Total Cost 1,955,000.00
Cost per Unit 8.50
No of Shirts 230,000.00
Variable product Cost per Shirt 4.00
Variable S& A 1.00
License fee 0.50
Total Variable

Capacity 250,000.00
Fixed Cost 460,000.00
Variable Cost 1,495,000.00
Conttribution Margin 805,000.00

1 Increase in Sale 90,000.00

Increase in Variable cost 60,000.00
Liscense fee 7,500.00
Increase in Net Income 22,500.00

210000
2 Increase in Sale 120,000.00 SALE 2,100,000.00
Increase in Variable cost 80,000.00 VC 1,155,000.00
Liscense fee 10000 CM 945,000.00
Increase in Net Income 30,000.00 FC
NI

3 Total Cost 67500

price 4.5
230,000.00

40000 250000
240,000.00 2,340,000.00
180,000.00 1,335,000.00
60,000.00 1,005,000.00
690,000.00
315000