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 56,000 13,500 $ 24,800,000 2014 60,000 12,600 $ 26,240,000 Production quantity Number of customers Revenues Expenses 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 3,557,200 $1,609,800 246,100 643,600 581,200 117,000 $ 3,224,000 1,467,200 $ 269,400 $ 622,000 $ 122,070 $ 688,100 $ 264,800 $ 1,248,000 438,200 138,270 305,080 $ 1,172,100 747,800 623,000 195,800 770,700 309,500 927,800 266,640 $ 1,176,000 438,200 133,050 348,120 1,329,900 885,830 $ Production quality control (6) Market research Depreciation (7) Facilities management (8) Legal Personnel department Utilities-production (9) Utilities-other (10) Customer service (11) $ 690,400 198,100 $ 860,600 $ 368,340 920,600 $ 13,895,950 $ 14,008,550 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 10% Required: 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. Function Behaviour Fixed Variable 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 O $ 0$ 0$ 0$ $ 0$ $ 0 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 Indirect Direct Direct materials & components Direct production wages Production supervisory salaries Insurance Building rent Other salaries Production quality control Depreciation Facilities management Utilities -production Prepare an income statement in good form for the year 2015. Compute the gross margin per unit for the year 3. CRATER CORPORATION-NORTH AMERICAN DIVISION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Less: Cost of goods sold $ 0 Less: Selling & administrative expenses