Given data: Estimated sales: 40,000 units at $6 each Direct materials cost per unit: $1.20 Direct labor: 6 minutes per unit at $15 per hour Unit overhead cost: $1.30 Sales commission rate: 10% of sales revenue Fixed selling and administrative expenses: $25,000 Let's calculate each part step by step. A. Budgeted Variable Marketing Expense: First, calculate the total sales revenue: \text{Sales revenue} = 40,000 \text{ units} \times $6/\text{unit} = $240,000 Sales commission expense: \text{Sales commission} = 10\% \times $240,000 = $24,000 Therefore, the budgeted variable marketing expense is: \text{Budgeted variable marketing expense} = \text{Sales commission} = \boxed{$24,000} B. Budgeted Operating Income: Calculate the total variable cost per unit: Variable cost per unit = $ 1.20 + ( 6 60 15 ) + $ 1.30 Variable cost per unit=$1.20+( 60 6 15)+$1.30 Variable cost per unit = $ 1.20 + $ 1.50 + $ 1.30 = $ 4.00 Variable cost per unit=$1.20+$1.50+$1.30=$4.00 Calculate total variable cost for 40,000 units: Total variable cost = 40 , 000 units $ 4.00 / unit = $ 160 , 000 Total variable cost=40,000 units$4.00/unit=$160,000 Calculate contribution margin: Contribution margin = Sales revenue Total variable cost Contribution margin=Sales revenueTotal variable cost Contribution