Variable Cost, Fixed Cost, Contribution Margin Income Statement

Head$-$First Company plans to sell $5,500$ bicycle helmets at $\backslash (\backslash$$ $83\backslash )$ each in the coming year. Product costs include:

Variable selling expense is a commission of $\backslash (\backslash$$ $2,90\backslash )$ per helmet; fixed selling and administrative expense totals $\backslash (\backslash$$ $29,700\backslash ).$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Required:

$1.$ Calculate the total variable cost per unit. Round your answers to the nearest cent.

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$2.$ Calculate the total fixed expense for the year.

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$3.$ Prepare a contribution margin income statement for Head$-$First Company for the coming year. Round your per unit answers to the nearest cent.

Head$-$First Company

Contribution Margin Income Statement

For the Coming Year