head but other costs are fully variable. are all fixed Contribution margin and break-even analysis Grand Canyon Manufacturing Inc. produces and sells a with a price of $100 per unit. The following cost data prepared for its estimated upper and lower limits of activity: P10-9 product have been Lower Limit 4,000 Upper Limit 6,000 Production (units) . Production costs Direct materials Direct labor.. Overhead: s 60,000 80,000 90,000 120,000 Indirect materials .. 25,000 40,000 20,000 37,500 50,000 20,000 Depreciation . . . . Selling and administrative expenses: 50,000 30,000 45,000 15,000 $365,000 65,000 30,000 45,000 $477,500