Question: Brief Exercise 7-25 Variable Cost, Fixed Cost, Contribution Margin Income Statement Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in

Brief Exercise 7-25 Variable Cost, Fixed Cost, Contribution Margin Income Statement Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year.

Product costs include:

Direct materials per pair $ 12 Direct labor per pair 4 Variable factory overhead per pair 2 Total fixed factory overhead 30,000 Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000.

Required:

1. Calculate the total variable cost per unit.

2. Calculate the total fixed expense for the year.

3. Prepare a contribution margin income statement for Chillmax Company for the coming year.

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