The following data is available for Crater Corporation's North American division for the years 2014 and 2015. During these years there were no inventories in the system. 2015 2014 Production quantity Number of customers Revenues 60,000 12,600 $24,800,000 $26,240,000 56,000 13,500 enses Direct materials & components Direct production wages (1) Production supervisory salaries Salaries paid to sales representatives (2) Advertising Insurance (3) Building rent (4) Other salaries (5) Honorarium to the members of the board Production quality control (6) Market research Depreciation (7) Facilities management (8) $ 3,224,000 $ 3,557,200 $ 1,467,200 $ 1,609,800 $269,400 $ 246,100 $622,000 $ 643,600 $688,100 $ 581,200 $ 122,070 $ 117,000 $266,640 $ 264,800 $ 1,176,000 $ 1,248,000 $438,200 $ 438,200 $ 133,050 $ 138,270 $348,120 $ 305,080 $ 1,329,900 $ 1,172,100 $885,830 $ 747,800 $690,400 $ 623,000 $198,100 $ 195,800 $ 860,600 $ 770,700 $368,340 $ 309,500 $920,600 $ 927,800 Personnel department Utilities-production (9) Utilities-other (10) Customer service (11) $14,008,550 $13,895,950 Note: 1. Paid on the basis of production quantity 2. Ten representatives @ $25.000 per person + 1.5% of sales revenue 3. Manufacturing-70%, remaining-general liability 4, Manufacturing-70%; Marketing-10%; remaining for Administration 5. Manufacturing-40%; Marketing-25%; remaining for Administration 6. Variable-30% 7. Manufacturing-70%, Sales & Marketing-20%; remaining for Adminsitration (all straight line) 8, Factory maintenance-40%; General maintenance-60% 9. Fixed-30% 10, Equally divided between Sales & Marketing and Administration; variable-35% 11. Variable-1096 Required 1. Classify the expense items by behaviour (based on the number of units produced/sold) and by function (manufacturing, sales/marketing, and administration). Write the amount for each item using 2015 data Behaviour Function Variable Fixed MFG Sales/MKT Admin Direct materials & components Direct production wages Production supervisory salaries Salaries paid to sales representatives Advertising Insurance Building rent Other salaries Honorarium to the members of the Board Production quality control Market research Depreciation Facilities management Legal Personnel department Utilities production Utilities other Customer service 2-a. What were the total amounts for product costs and period costs during 2015? 2015 Product cost Period cost 2-b. Classify the product costs as direct or indirect. (As appropriate, place an V in the Direct or Indirect column.) Product costs Direct materials & components Direct production wages Production supervisory salaries Insurance Building rent Other salaries Production quality contro Depreciation Facilities management Utilities - production Direct Indirect 3. Prepare an income statement in good form for the year 2015. Compute the gross margin per unit for the year. CRATER CORPORATION NORTH AMERICAN DIVISION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Less: Cost of goods sold Less: Selling & administrative expenses