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 2 pair Total fixed factory overhead 30,000 Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000. 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 Chillmax Company for the coming year. Enter all amounts as a positive number. Chillmax Company Contribution Margin Income Statement For the Coming Year Total Per Unit Sales Total variable cost Total contribution margin Total fixed cost Operating income

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 2 pair Total fixed factory overhead 30,000 Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000. 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 Chillmax Company for the coming year. Enter all amounts as a positive number. Chillmax Company Contribution Margin Income Statement For the Coming Year Total Per Unit Sales Total variable cost Total contribution margin Total fixed cost Operating income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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