Expense Analysis: Labour (Cost of Goods Sold): Variable - It directly correlates with the number of units produced. Material (Cost of Goods Sold): Variable - Again, it directly relates to the number of units produced. Packaging Labour: Fixed - This expense is likely fixed as it is a set cost regardless of the number of units produced. Electricity: Variable - Typically, electricity costs vary with production levels. Amortization: Fixed - Amortization expenses usually remain constant over the short term regardless of production levels. Rent: Fixed - Rent is generally a fixed expense. Shipping: Variable - Shipping costs tend to vary with the number of units shipped. II. Contribution Margin Calculation: Contribution Margin per Unit = (Revenue per Unit) - (Variable Costs per Unit) Variable Costs per Unit = (Labour per Unit) (Material per Unit) (Electricity per Unit) (Shipping per Unit) Given: Revenue per Unit = Revenue / Number of Units Produced = $652,900 / 12,000 = $54.41 per unit Labour per Unit = $77,900 / 12,000 = $6.49 per unit Material per Unit = $52,900 / 12,000 = $4.41 per unit Electricity per Unit = $16,900 / 12,000 = $1.41 per unit Shipping per Unit = $162,900 / 12,000 =