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Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year....

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Accounting

Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include:

Direct materials per helmet $ 30
Direct labor per helmet 8
Variable factory overhead per helmet 4
Total fixed factory overhead 20,000

Variable selling expense is a commission of $3 per helmet; fixed selling and administrative expense totals $29,500.

Required:

Calculate the total variable cost per unit.

Calculate the total fixed expense for the year.

Prepare a contribution margin income statement for Head-First Company for the coming year.

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