Prepare contribution margin income statement for head-first

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Reference no: EM13940493

VARIABLE COST, FIXED COST, CONTRIBUTION MARGIN INCOME STATEMENT

Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year. Product costs include:

Direct materials per helmet	$ 30
Direct labor per helmet	5
Variable overhead per helmet	12
Total fixed factory overhead	14,000

Variable selling expense is a commission of $2 per helmet; fixed selling and adminis- trative expense totals $15,400.

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: EM13940493

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