Calculate the total fixed expense for the year

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Question - Head-First Company plans to sell 5,800 bicycle helmets at $67 each in the coming year. Product costs include:

Direct materials per helmet $29

Direct labor per helmet 11.00

Variable factory overhead per helmet 4.25

Total fixed factory overhead 20,000

Variable selling expense is a commission of $3.80 per helmet; fixed selling and administrative expense totals $29,900.

Required -

1. Calculate the total variable cost per unit.

2. Calculate the total fixed expense for the year.

3. Prepare a contribution margin income statement for Head-First Company for the coming year.

Reference no: EM133032204

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