Description Amount

Units Sold $70,000$

Units produced $40,000$

Total revenue $$4,200,000$

Direct labor $($per unit$)$ $$2\mathrm{.}00$

Factory rent $($annual amount$)$ $$40,000$

Production supervisors$$ salary $($annual amount$)$ $$70,000$

Depreciation on factory machinery $($annual amount$)$ $$10,000$

Beginning raw materials inventory $$450,000$

Vice President of Marketing salary $($annual amount$)$ $$125,000$

Corporate Headquarter Clerical Staff salaries $($annual amount$)$ $$400,000$

Factory department supervisors$$ salaries $($annual amount$)$ $$50,000$

Ending raw materials inventory $$500,000$

Purchases of raw materials $$750,000$

Sales commission $($per unit$)$ $$2\mathrm{.}00$

Sales employees$$ salaries $($fixed$)$ $$80,000$

Fixed other administrative expenses $($annual amount$)$ $$40,000$

Variable other manufacturing cost per unit $$5\mathrm{.}00$

Fixed other manufacturing cost $($annual amount$)$ $$210,000$

Calculate selling price per unit.

Calculate per unit variable cost.

Calculating per unit variable cost is a two$-$step process.

Calculate the contribution margin per unit.

Calculate total contribution margin.

Calculate total fixed cost.

Calculate net income.