Part 5. CVP ProblemSarahs T-ShirtsSarahs T-Shirts business makes and sells tie dyed and embroidered.

Part 5. CVP ProblemSarahs T-ShirtsSarahs T-Shirts business makes and sells tie dyed and embroidered T-Shirts. Sales information for the lastyear is shown below. During the year, Sarahs fixed manufacturing costs were $40,000 and fixed Sellingand Administrative costs were $50,000.Sales unitsUnit priceVariable manufacturingcost/unitSales commission (%sales)Tie Dyed15,000$ 12Embroidered8,000$ 18$ 7$ 910%15%Prepare an Income Statement in Contribution Margin format for Sarahs business. Calculatebreakeven units and revenue for her total business. What is her margin of safety %?

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