Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the coming

Question

Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the coming year. Product costs include:

Variable selling expense is a commission of $4.00 per helmet; fixed selling and administrative expense totals $29,900.

Refer to the list below for the exact wording of an amount description within your income statement.

1. Calculate the total variable cost per unit. Round your answer to two decimal places.

Variable cost per unit :

2. Calculate the total fixed expense for the year.

Total fixed expense for the year :

3. Prepare a contribution margin income statement for Head-First Company for the coming year. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Round your per unit answers to two decimal places.

Head-First Company

Contribution Margin Income Statement

For the Coming Year

1

Total Per Unit

2

Sales

3

4

5

6

Direct materials per helmet $ 29 Direct labor per helmet 8.00 Variable factory overhead per helmet 5.00 Total fixed factory overhead 19,000

Explanation / Answer

Answer:1

Answer:2 Total fixed cost=29900+19000=48900

Answer:3

Particulars VC Per unit Direct Material per helmet 29 Direct labor per helmet 8 Variable factory overhead per helmet 5 Variable selling expense per helmet 4 Total variable cost 46

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