Calculate the total variable cost per unit

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Reference no: EM133151993

Question - Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include:

Direct materials per helmet $30

Direct labor per helmet 8

Variable factory overhead per helmet 4

Total fixed factory overhead 20,000

Variable selling expense is a commission of $3 per helmet; fixed selling and administrative expense totals $29,500.

Required -

1. Calculate the total variable cost per unit.

2. Prepare a contribution margin income statement for Head - First coming for the coming year. Refer to the list of Amount Descriptions for the exact wording of text items within the income statement.

Reference no: EM133151993

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