191. The manufacturing cost of Mocha Industries for three months of the year are provided below:
|
Total Cost
|
Production
|
April
|
$ 63,100
|
1,200 Units
|
May
|
80,920
|
1,800
|
June
|
100,300
|
2,400
|
|
|
|
Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs.
a. $31 per unit = ($100,300 - $61,900) / (2,400 - 1,200)
b. $25,900 = $100,300 - ($31 ´ 2,400)
192. The manufacturing cost of Carrie Industries for the first three months of the year are provided below:
|
Total Cost
|
Production
|
January
|
$ 93,300
|
2,300 Units
|
February
|
115,500
|
3,100
|
March
|
81,900
|
1,900
|
|
|
|
Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost.
a. $28 per unit = ($115,500 - $81,900) / (3,100 - 1,900)
b. $28,700 = $115,500 - ($28 ´ 3,100)
193. Carmelita Company sells 40,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $62,000. Determine the (a) unit contribution margin, (b) contribution margin ratio, and (c) income from operations.
a. $8 per unit = $18 - $10
b. $8 / $18 = 44.44%
c.
194. Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and fixed costs are $800,000. Determine the (a) unit contribution margin (b) contribution margin ratio, and (c) income from operations.
a. $30 per unit = $59 - $29
b. $50.8% = unit CM $30 / unit SP $59
c.
195. Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the (a) break-even point in sales units, and (b) break-even point if the selling price was increased to $75 per unit.
a. SP $60 - VC $20 = CM $40
$85,000 / $40 = 2,125 units BEP
b. SP $75 - VC $20 = CM $55
$85,000 / $55 = 1,546 units