Whitman Company has just completed its first year of operations. The company's traditional format income statement for the year

follows:

The company's selling and administrative expenses consist of $$210,000$ per year in fixed expenses and $$2$ per unit sold in variable

expenses. The $$16$ unit product cost given above is computed as follows:

Required:

Prepare a contribution format income statement for the year ended December $31.$

What was the contribution toward fixed expenses and profits for each unit sold? $($State this figure in a single dollar amount per

snowboard.$)$

What would operating income be if only $32,000$ units were sold in a quarter? You can assume no change to fixed expenses will

occur if sales decline to $20,000$ units. $($Hint: You don't need to prepare a new income statement to determine the answer.$)$

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