The company's selling and administrative expenses consist of $$227,000$ per year in fixed expenses and $$2$ per unit sold in variable

expenses. The $$25$ unit product cost given above is computed as follows:

Required:

Prepare a contribution format income statement for the year ended December $31.$

What was the contribution toward fixed expenses and profits for each unit sold? $($State this figure in a single dollar amount per

snowboard.$)$

What would operating income be if only $40,500$ units were sold in a quarter? You can assume no change to fixed expenses will

occur if sales decline to $28,500$ units. $($Hint:You don't need to prepare a new income statement to determine the answer.$)$