Skis sell, on the average, for $407 per pair. Variable selling expenses are $45 per pair of skis sold. The remaining selling expenses are fixed.

Skis sell, on the average, for $407 per pair. Variable selling expenses are $45 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $158 per pair.