Question: Down Jackets has three types of costs: jacket cost, factory rent cost, and utilities cost. This company sells its jackets for $16.50 each. Management has

Down Jackets has three types of costs: jacket cost, factory rent cost, and utilities cost. This company sells its jackets for $16.50 each. Management has prepared the following estimated cost information for next month under two different sales levels.

Required
1. Compute what the company should expect for total variable cost if 11,000 jackets are sold next month.
2. Prepare its contribution format income statement for a monthly sales volume of 12,000jackets.

At 10,000 Jackets At 12,000 Jackets Jacket cost Rent cost . Utilides cost $80,000 6,000 8.400 $96,000 6,000 9,900 -..-.-.

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