Jimbob Co. is a merchandising company that buys and resells tires for rally race cars. The company's income statements for the last two years are given below:

Last year This year

Units sold 2,200 2,000

Sales $330,000 $300,000

Less cost of goods sold 220,000 200,000

Gross margin 110,000 100,000

Less operating expenses 65,000 60,000

Net income $45,000 $40,000

The company has no beginning or ending inventories.

Required:

a. Estimate the company's total variable cost per unit for operating expenses.

b. What is the company's total of fixed costs per year?

c. Compute the company's contribution margin for this year.