Butler Sales Company Is a Distributor That Has an Exclusive

Essay

Butler Sales Company is a distributor that has an exclusive franchise to sell a particular product made by another company.Butler Sales Company's traditional format income statements for the last two years are given below:
Selling and administrative expense is a mixture of fixed costs and variable costs that vary with respect to the number of units sold.
Required:
a.Estimate the company's variable selling and administration expense per unit,and its total fixed selling and administrative expense per year.
b.Compute the company's contribution margin for this year.