Sales 239,850 Selling price times unit sales VC 75,400 (Variable manufacturing + variable S & A) * units sold CM 164,450 FC 151,625 Fixed manufacturing + fixed S & A NI 12,825Computation of COGS Unit Cost Variable Manufacturing 8.75 Given FOH per unit 12.45 Total FOH divided by units produced 21.20 COGS From Beginning Inventory 35,856 Given From Current Production 80,560 Unit cost (see above) times unit sales less unit from beginning inventory 116,416 Sales 239,850 selling price times unit sales COGS 116,416 See above Gross Margin 123,434 S & A 64,325 Variable S & A times unit sales + fixed S & A NI 59,109