Madden Company would like to estimate costs associated with its production of football helmets on a monthly basis. The accounting records indicate the following production costs were incurred last month for 4,000 helmets.

Assembly workers labor (hourly)	$70,000
Factory rent	3,000
Plant managers salary	5,000
Supplies	20,000
Factory insurance	12,000
Materials required for production	20,000
Maintenance of production equipment (based on usage)	18,000

REQUIRED:

a. Identify which of the costs in the table above are fixed, and which are variable. (5.1)

b. Use account analysis to estimate total fixed costs per month and the variable cost per unit. State your results in the cost equation form Y = f + vX by filling in the dollar amounts for f and v. (5.2)

c. Estimate total production costs assuming 5,000 helmets will be produced and sold. (5.2)

d. Prepare a contribution margin income statement assuming 5,000 helmets will be produced, and each helmet will be sold for $70. Fixed selling and administrative costs total $10,000. Variable selling and administrative costs are $8 per unit. (5.3)