The controller of Manufacturing Co. has collected the following data on drilling machines: Month Total Cost Total Hours March $12,460 8,100 April $12,000 7,600 May $63,000 30,000 June $14, 740 9,800 July $25,000 20000 August $55,000 22,000 The price per unit of the drilling machines is $25. Please calculate all of the following: Variable Cost and Fixed Cost using the High-Low Method. Breakeven point in units. Breakeven point in dollars using the Contribution Margin Ratio. Margin of Safety Percentage if their sales are $756,000. How many units they would need to sell in order to have a Net Income of $1,200,000.
The controller of Manufacturing Co. has collected the following data on drilling machines:
Month Total Cost Total Hours
March $12,460 8,100
April $12,000 7,600
May $63,000 30,000
June $14, 740 9,800
July $25,000 20000
August $55,000 22,000
The price per unit of the drilling machines is $25.
Please calculate all of the following:
- Variable Cost and Fixed Cost using the High-Low Method.
- Breakeven point in units.
- Breakeven point in dollars using the Contribution Margin Ratio.
- Margin of Safety Percentage if their sales are $756,000.
- How many units they would need to sell in order to have a Net Income of $1,200,000.
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