1. High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. 2. Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
1. High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. 2. Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. High-Low Method
The
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.
2.
Contribution Margin
United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
Transcribed Image Text:High-Low Method
The manufacturing costs of Ackerman Industries for the first three months of the year follow:
Total Costs
Units Produced
January
$126,720
1,440 units
February
174,870
3,220
March
197,120
4,640
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.
a. Variable cost per unit
$
b. Total fixed cost
Transcribed Image Text:Contribution Margin
United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
a. Contribution margin ratio (Enter as a whole number.)
X %
b. Unit contribution margin (Round to the nearest cent.)
per unit
c. Income from operations
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