Margin income statement questjon?

tese LUpanies use the cost behavior information requested? 42. Account Analysis and Contribution Margin Income Statement. Downhill Company would like to estimate costs associated with its production of bike 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) S70,000 Factory rent 3.000 Plant manager's salary 5,000 Supplies 20,000 Factory insurance 12,000 Materials required for production 20,000 Maintenance of production equipment (based on usage) Required: 18,000 a. 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 = vX by filling in the dollar amounts for fand v. b. Estimate total production costs assuming 5,00o helmets will be produced and sold. c. Prepare a contribution margin income statement assuming 5.000 helmets will be produced, and each helmet will be sold for S7o. Fixed selling and administrative costs total $10,00o. Variable selling and administrative costs are $8 per y, Kitchen Products, Inc., produces 42 Account Analysis and Contribution Margin Income Statement a. Fixed costs per month and variable cost per unit are as follows: Fixed Costs: Total monthly fixed costs Variable Costs: 5 6 7 18 Total variable costs 19 Units produced Variable cost per unit 20 units 21 per unit 23 The cost equation is: Y- X 24 25 b. Using the equation from above, substitute units for X as follows: 27 Y- units) 28 Y= 29 Y- 31 32 Contribution margin income statement C. 34 Sales 35 Variable costs 36 Cost of goods sold 37 38 Selling and administration Total variable costs 39 Contribution margin 200,000 41 Foxed costs Cost of goods sold Selling and administration Total fixed costs Operating profit O 017 P42 b and c Peads PA3 a P43 b P43 b