Reference no: EM133975520

Problem

Jenny was thrilled that her new car not only had leather seats but also had seat coolers to keep her and her co-pilot comfortable even in the heat of the summer. She felt it was worthwhile to upgrade for this feature, even though it added $700 to the price tag of her vehicle. This purchase also allows Jenny to understand the true value of this product from both the customer and employee side. You see, she worked in the accounting department of the seat-cooler component manufacturer, so she was used to thinking about the costs and profitability of this component. Since she could now personally appreciate the product, she decided to take a closer look at last year's financial performance of the seat coolers, as follows. Sales $35,000,000 COGS 22,950,000 Gross margin 12,050,000 Selling, general, and administrative expenses 5,015,000 Operating income $ 7,035,000 During that year, the company sold 50,000 units, where one unit includes cooling components for both front seats. The variable SG&A costs were $25 per unit, while the fixed manufacturing costs were $8,450,000. Get the instant assignment help. How much of the company's COGS is variable? Express this in a per-unit amount. How much of the company's SG&A costs are fixed?