Whittier Company plans to sell $1,000$ mowers at $$400$ each in the coming year. Product costs include:

Direct materials per mower $ $180$

Direct labour per mower $ $100$

Variable factory overhead per mower $ $25$

Total fixed factory overhead $$15,000$

Variable selling and administrative per mower $ $20$

Fixed selling and administrative expense $ $30,000$

$($The relevant range of production is $500$ units to $1,500$ units.$)$

Requirements:

$1.($a$)$ Calculate the total variable cost per unit.

$($b$)$ Calculate the total fixed expense for the year.

$2.$ Prepare a contribution margin income statement for Whittier Company for the coming year.

$3.($a$)$ Calculate variable cost ratio.

$($b$)$ Calculate contribution margin ratio.

$4.$ Calculate the number of mowers thatCompany must sell to break even.

$5.$ Calculate sales revenue dollars that Company must make to break even.