Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the coming year. Product costs include: Direct materials per helmet $29 Direct labor per helmet 8.00 Variable factory overhead per helmet 5.00 Total fixed factory overhead 19,000 Variable selling expense is a commission of $4.00 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
Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the coming year. Product costs include: Direct materials per helmet $29 Direct labor per helmet 8.00 Variable factory overhead per helmet 5.00 Total fixed factory overhead 19,000 Variable selling expense is a commission of $4.00 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
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
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