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Problem - Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year. Product costs include: Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000.
Required -
Calculate the total variable cost per unit.
Calculate the total fixed expense for the year.
Prepare a contribution margin income statement for Chillmax Company for the coming year.
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