Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year. Product costs include:

Direct materials per pair...............................$ 12

Direct labor per pair........................................4

Variable factory overhead per pair........................2

Total fixed factory overhead.......................30,000

Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000.

Required:

1. Calculate the total variable cost per unit.

2. Calculate the total fixed expense for the year.

3. Prepare a contribution margin income statement for Chillmax Company for the coming year.