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  1. business
  2. accounting
  3. the company's selling and administrative expenses

The company's selling and administrative expenses consist of $227,000 per year in fixed expenses and...

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Accounting

The company's selling and administrative expenses consist of $227,000 per year in fixed expenses and $2 per unit sold in variable
expenses. The $25 unit product cost given above is computed as follows:
Required:
Prepare a contribution format income statement for the year ended December 31.
What was the contribution toward fixed expenses and profits for each unit sold? (State this figure in a single dollar amount per
snowboard.)
What would operating income be if only 40,500 units were sold in a quarter? You can assume no change to fixed expenses will
occur if sales decline to 28,500 units. (Hint:You don't need to prepare a new income statement to determine the answer.)
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