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Business, 14.02.2020 18:11 vedros

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.

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Variable Cost, Fixed Cost, Contribution Margin Income Statement
Chillmax Company plans to sel...
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