Untitled 2

1. 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:
   1. 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.
   2. B. Estimate total production costs assuming 5,000 helmets will be produced and sold.
   3. C.Prepareacontributionmarginincomestatementassuming5,000helmetswillbeproduced,andeachhelmetwillbesoldfor$70.Fixedsellingandadministrativecoststotal$10,000.Variablesellingandadministrativecostsare$8perunit.
2. ----> 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 )