# units 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total price/unit $ 90.00 $ 90.00 $ 90.00 $ 90.00 Sales $$ DM/unit $ 12.00 $ 12.00 $ 12.00 $ 12.00 DM $$ DLH/unit total DLH 2.5 2.5 2.5 2.5 rate/DLH $ 14.00 $ 14.00 $ 14.00 $ 14.00 DL $$ OH/DLH $ 15.00 $ 15.00 $ 15.00 $ 15.00 OH $$ Mfg Cost ($$) Gross Margin var SG&A/unit var SG&A $$ fix SG&A 1.00 $ 1.00 $ 1.00 $ 1.00 total SG&A op income $ 50,000 $ 50,000 $ 50,000 $ 50,000 == total sales in units = 100,000; Q1 = 18%, Q2 = 17%, Q3 = 26%, Q4 = 39% remember the three elements of manufacturing cost assume no beginning or ending inventory