For the current year ending March 31, Jwork Company expects fixed costs of $725,400, a unit variable cost of $64, and a unit selling price of $95.
a. Compute the anticipated break-even sales (units).
units
b. Compute the sales (units) required to realize income from operations of $167,400.
units
2)Contribution Margin Ratio
a. Bert Company budgets sales of $1,290,000, fixed costs of $78,400, and variable costs of $348,300. What is the contribution margin ratio for Bert Company? (Enter your answer as a whole number.)
%
b. If the contribution margin ratio for Ernie Company is 58%, sales were $431,000, and fixed costs were $182,490, what was the income from operations?
$
3)High-Low Method
Shatner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced |
Total Costs |
| 1,665 |
|
|
$186,480 |
|
| 3,160 |
|
|
214,450 |
|
| 5,365 |
|
|
290,080 |
|
a. Determine the variable cost per unit and the total fixed cost.
| Variable cost: (Round to the nearest dollar.) |
$ per unit |
| Total fixed cost: |
$ |
b. Based on part (a), estimate the total cost for 2,530 units of production.
| Total cost for 2,530 units: |
$ |