shirts are expected to be 5 less how much is your projected net operating

# Shirts are expected to be 5 less how much is your

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shirts) are expected to be 5% less, how much is your projected net operating income (or loss)?10. Continue Question „9”. If the only expense you can cut isthe salary paid to yourselves, how much salary should you cut in order to break even?11. Ignore Question “9” and “10”. Assume that you have produced 7,800 t-shirts, but the actual sales for the first year turn out to be 7,000 T-shirts instead of 7,800. I.e. you will have 800 T-shirts left at the end of the first year. Prepare (a) a traditional format income statement and (b) a contribution format income statement. Are the two net operating income figures the same? Why or why not?12. Continue “11”. At what amount would inventory be reported in the balance sheet of 12/31/2014 under (a) the absorption costing and (b) variable costing? Are the two ending inventory figures the same or different? Why? Solution 1. Calculation of Cost per T - Shirt :under absorption costing __________________________________________________ ______________________________________ Cost of White T. shirts (3.75 x 7800) \$ 29,250 Storage cost (125 x 12 ) \$ 1,500 Rent ( 2500 x

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