Cornerstone Exercise $4-13$ Statement

costs include:

Variable Cost, Fixed Cost, Contribution Margin Income

Head$-$First Company plans to sell $5,000$ bicycle helmets at $$75$ each in the coming year. Product cost include:

$-$Direct materials per helmet $ $30$

$-$Direct labor per helmet $8$

$-$Variable factory overhead per helmet $4$

$-$Total fixed factory overhead $20,000$

$-$Variable selling expense is a commission of $$3$ per helmet;

$-$fixed selling and administrative

expense totals $$29,500.$

Required:

$1.2.3.$ Calculate the total variable cost per unit.

Calculate the total fixed expense for the year.

Prepare a contribution margin income statement for Head$-$First Company for the coming

year.