Marksman Modems, Inc makes Modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash.

1. Acquired $835,000 of cash from the owners. 2. Purchased $440,000 of manufacturing equipment. The equipment has a $36,000 salvage value and a four-year useful life. 3. The company started and completed 7,500 modens. Direct materials purchased and used amounted to 557 per unit. 4. Direct labor costs amounted to $42 per unit. 5. The cost of manufacturing supplies used amounted to $7 per unit. 6. The company paid $67,000 to rent the manufacturing facility. 7. Magnificent hold 11 7,500 units at cash price of $205 per unit. (Hint: It vill be necessary to determine the manufacturing costs in order to record the cont of goods sold.) 8. The sales statt was paid a $6 per unit sales commission, 9. Pald $56,000 to purchase equipment for administrative offices. The equipment was expected to have a $4,700 salvage value and a three-year useful life. 0. Administrative expenses consisting of office rental and salaries anounted to $74,500. Required a. Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling. general, and administrative (SG&A). The solution for the first item is shown as an example. b. Complete the following table to indicate the product cost per unit assuming levels of production of 7,500, 8,500,9,500, and 10,500. Required a. Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling, general, and administrative (SG&A). The solution for the first item is shown as an example. b. Complete the following table to indicate the product cost per unit assuming levels of production of 7,500, 8,500, 9,500, and 10,500. Complete this question by entering your answers in the tabs below. Reg A ReqB Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling, general, and administrative (SG&A). The solution for the first item is shown as an example. Fixed cost Product cost Cost Item Depreciation on manufacturing equipment Direct materials Direct labor Manufacturing supplies Rent on manufacturing facility Sales commissions Depreciation on administrative equipment Administrative contrent and Salaries) Req> Required a. Based on these data, identify each cost incurred by the company as (1) fixed versus variable relative to the number of units produced and sold; and (2) product versus selling, general, and administrative (SG&A). The solution for the first item is shown as an example. b. Complete the following table to indicate the product cost per unit assuming levels of production of 7,500, 8,500, 9,500, and 10,500. Complete this question by entering your answers in the tabs below. Req A Red B Complete the following table to indicate the product cost per unit assuming levels of production of 7,500, 8,500, 9,500, and 10,500. (Do not round Intermediate calculations. Round "Cost per unit to 2 decimal places.) 7,500 8,500 Production Levels Variable cost 9,500 10.500 Por Unit $ 106 Faed cost Total (Cost of goods sold) Cont per unit