187.The following information is available for Alba Company's maintenance cost over the last four months.
MonthMaintenance hoursMaintenance cost
January150$6,000
February120$5,100
March240$8,100
April210$6,900
Use the high-low method to estimate both the fixed and variable component of its maintenance cost.
188.The following information is available for a company's cost of sales over the last five months.
MonthUnits soldCost of sales
January1,200$43,000
February800$37,000
March1,600$49,000
April2,400$61,000
Use the high-low method to estimate the fixed and variable components of the cost of sales.
189.A company manufactures a product and sells it for $120 per unit. The total fixed costs of manufacturing and selling the product are expected to be $155,250, and the variable costs are expected to be $75 per unit. What is the company's break-even point in (a) units and (b) dollar sales?
190.A product has a contribution margin per unit of $17 and sells at $25 per unit. If the break-even point is 82,000 units, calculate (a) the variable costs per unit and (b) the total fixed costs.
191.A firm provides the following sales data:
Expected unit sales5,000Unit variable cost$10
Unit selling price$16Total fixed cost$12,000
Required:
(a) Calculate the break-even point in dollar sales.
(b) Calculate the margin of safety in dollar sales.
192.Parker Co. is preparing next period's forecasts. Total fixed costs are expected to be $300,000 and the contribution margin ratio is expected to be 30%.
(a) Calculate the company's break-even point in dollar sales.
(b) If sales are $1,800,000 above the break-even point, what will Parker's pretax income be?