Variable Cost, Fixed Cost, Contribution Margin Income Statement
Chillmax Company plans to sel...
Variable Cost, Fixed Cost, Contribution Margin Income Statement
Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year. Product costs include:
Direct materials per pair $ 12
Direct labor per pair 4
Variable factory overhead per pair 2
Total fixed factory overhead 30,000
Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000.
(a) Calculate the total variable cost per unit.
(b) Calculate the total fixed expense for the year.
Answers: 2
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