All Weather Company makes umbrellas and outerwear items for rainy and

snowy days. It had the following cost structure for the past year:

Items

Units produced and sold

Average sales price per unit

Direct materials cost per unit

Direct labor cost per unit

Variable overhead per unit

Fixed overhead per unit

Selling and administrative cost per unit

Direct fixed selling and administrative costs

Allocated fixed administrative costs

Umbrellas

$100,000$

S$12$

S$3$

$$1\mathrm{.}50$

S$0\mathrm{.}60$

$$2\mathrm{.}50$

$$0\mathrm{.}40$

$$76,000$ total

$$51,000$ total

Clothing

$10\mathrm{.}000$

$$75$

S$16$

$$5\mathrm{.}50$

$$3\mathrm{.}50$

$$11$

$$4$

$$78\mathrm{.}000$ total

$$37,000$ total

Total

$110,000$

$$1,950,000$

$$460,000$

$$205,000$

$$95\mathrm{.}000$

$$360,000$

$$80,000$

$$154,000$

$$88,000$ a$.$ What is the product cost per unit and gross profit per unit for each

product line under the traditional $($functional$)$ income statement format? b$.$ What is the variable cost per unit and the contribution margin per unit for each product line under the contribution margin income statement

format? c$.$ What are the differences in classification of costs between the traditional $($functional$)$ income statement and the contribution margin income

statement? d$.$ The allocated fixed administrative costs represent costs that must be covered but do not vary regardless of the product line. Such costs would

include executive salaries, corporate costs of depreciation, utilities, accounting services, legal services, insurance, and property taxes. Why would it be important to distinguish between the direct fixed selling and

administrative costs and the allocated administrative costs? e$.$ Consider the cost$-$benefit analysis. If you were the manager, what information would you seek in deciding whether it was necessary to refine the analysis further