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Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct
Head-First Company plans to sell 4,400 bicycle helmets at $72 each in the coming year. Product costs include:
Direct materials per helmet | $ 30 |
Direct labor per helmet | 5.00 |
Variable factory overhead per helmet | 4.50 |
Total fixed factory overhead | 20,000 |
Variable selling expense is a commission of $3.30 per helmet; fixed selling and administrative expense totals $28,500.
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 Head-First Company for the coming year. |
Refer to the list below for the exact wording of an amount description within your income statement.
Amount Descriptions | |
Operating income | |
Operating loss | |
Sales | |
Total contribution margin | |
Total fixed expense | |
Total variable expense |
1. Calculate the total variable cost per unit. Round your answer to two decimal places.
Variable cost per unit
2. Calculate the total fixed expense for the year.
Total fixed expense for the year
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