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 the variable cost ratio. (b) Calculate the contribution margin ratio. 4. Calculate the number of mowers that Whittier Company must sell to break even. 5. Calculate the sales revenue dollars that Whittier Company must make to break even. 6. Check your answer to Req 4 and Req 5 by preparing a contribution margin income statement based at the break-even point. [Hint: Recall that net operating income should be equal to zero at the break-even point.]