Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below

Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below

	Last Year	This Year
Unit sold	50000	70000
Sales	800000	1120000
Less: Cost of goods sold	550000	710000
Gross margin	250000	410000
Less: Operating expenses	150000	190000
Net income	100000	220000

The company has no beginning or ending inventories.

Required:

a. Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.)

b. Compute the company's contribution margin for this year.