Head First Company plans to sell 5, 100 bicycle helmets at $78 each in the coming year
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Question:
Head First Company plans to sell 5, 100 bicycle helmets at $78 each in the coming year Product costs include
Direct materials per helmet $32
Direct labor per helmet 5.50
Variable factory overhead per helmet 525
Total fixed factory overhead 21,000
Variable selling expense is a commission of 53:40 per helmet, fixed selling and administrative expense totals $29,800.
Required
1. Calculate the total variable cost per unit
2. Calcolate the total fixed expense for the year
3. Prepare a contribution margin income statement for Head-First Company for the coming year
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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