9100 per quartr 20000 581000 18000 171000 Solution Req 1 Uni

$9.100 per quartr 20.000 581.000 18.000 $171.000

Solution

Req 1: Units Shipping expense High Activity 27000 231000 Low Activity 17000 161000 Change 10000 70000 Variable cost per unit (Change in cost/ Change in units): $ 7 per unit Fixed cost (231000-27000*7) = $ 42000 Req 2: Contribution margin income Statement Sales revenue (23000 units @51) 1173000 Vvariable expense Cost of goods sold (23000*21) 483000 Sales commission (4%*23000*51) 46920 Shipping expense (23000*7) 161000 Total variable ccost 690920 Contribution margin   482080 Fixed cost: Advertsiement cost 171000 Shipping expense 42000 Admin salaries 81000 insurance 9100 Depreciation 51000 Total fixed cost 354100 Net income 127980