Untitled 2 Account Analysis and Contribution Margin Income Statement Downhill Company would like to estimate costs associated with its production of bike helmets on a monthly basis The accounting records indicate the following production costs were incurred last month for 4,000 helmets Assembly workers labor (hourly) $70,000 Factory rent 3,000 Plant manager s salary 5,000 Supplies 20,000 Factory insurance 12,000 Materials required for production 20,000 Maintenance of production equipment (based on usage) 18,000 Required A Use account analysis to estimate total fixed costs per month and the variable cost per unit State your results in the cost equation form Y f vX by filling in the dollar amounts forfandv B Estimate total production costs assuming 5,000 helmets will be produced and sold C Prepareacontributionmarginincomestatementassuming5,000helmetswillbeproduced,andeachhelmetwillbesoldfor$70 Fixedsellingandadministrativecoststotal$10,000 Variablesellingandadministrativecostsare$8perunit In attachment I have a template you can follow to answer 42 Account Analysis and Contribution Margin Income Statement a Fixed costs per month and variable cost per unit are as follows Fixed Costs Total monthly fixed costs Variable Costs Total variable costs Units produced Variable cost per unit units per unit The cost equation is Y b X Using the equation from above, substitute units for X as follows Y Y Y c ( Contribution margin income statement Sales Variable costs Cost of goods sold Selling and administration Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administration Total fixed costs units )

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Untitled 2 Account Analysis and Contribution Margin Income Statement.Downhill Company would like to estimate costs associated with its production of bike helmets on a monthly

Untitled 2

Account Analysis and Contribution Margin Income Statement.Downhill Company would like to estimate costs associated with its production of bike helmets on a monthly basis. The accounting records indicate the following production costs were incurred last month for 4,000 helmets.

Assembly workers? labor (hourly)	$70,000
Factory rent	3,000
Plant manager?s salary	5,000
Supplies	20,000
Factory insurance	12,000
Materials required for production	20,000
Maintenance of production equipment (based on usage)	18,000

Required:

A. Use account analysis to estimate total fixed costs per month and the variable cost per unit. State your results in the cost equation form Y =f+vX by filling in the dollar amounts forfandv.
B. Estimate total production costs assuming 5,000 helmets will be produced and sold.
C.Prepareacontributionmarginincomestatementassuming5,000helmetswillbeproduced,andeachhelmetwillbesoldfor$70.Fixedsellingandadministrativecoststotal$10,000.Variablesellingandadministrativecostsare$8perunit.

----> In attachment I have a template you can follow to answer

42. Account Analysis and Contribution Margin Income Statement a. Fixed costs per month and variable cost per unit are as follows: Fixed Costs: Total monthly fixed costs Variable Costs: Total variable costs Units produced Variable cost per unit units per unit The cost equation is: Y = b. X Using the equation from above, substitute units for X as follows: Y = Y = Y = c. + + + ( Contribution margin income statement: Sales Variable costs: Cost of goods sold Selling and administration Total variable costs Contribution margin Fixed costs: Cost of goods sold Selling and administration Total fixed costs units )