Hello tutor give answer The highest value of total cost was $760,000 in June forMantilla Beverages, Inc. Its lowest value of total costwas $560,000 in December. The company makes asingle product. The production volumes in June andDecember were 15,000 and 7,000 units, respectively.What is the fixed cost per month? (Round anyintermediate calculations to the nearest cent, and thefinal answer to the nearest dollar.)A. $200,000B. $385,000C. $560,000D. $7,000

To find the fixed cost per month, we can use the high-low method. The high-low method helps us…

Answered: The highest value of total cost was…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Chocos Chocolates incurs the following costs for the month: A. What is the prime cost? B. What is the conversion cost?
Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $79,900 in March and rose to $93,120 in April. It costs Western Trucking $0.15 per mile in variable costs. In March, the delivery trucks were driven a total of 85,000 miles, and in April,. they were driven a total of 96,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? B. What were the cost per mile to operate the fleet in March and April, respectively?
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Solve this problem
4. The following monthly data are available for Salalah Company which produces only one product: Selling price per unit, RO 30; Unit variable expenses, RO 15; Total fixed expenses, RO 50,000; Actual sales for the month of July, 10,000 units. How much is the margin of safety for the company for July?
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $102,926 1,860 Units May 105,960 2,600 June 110,798 3,780 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$fill in the blank 1 per unit b. Using the high-low method, determine the total fixed costs.$fill in the blank 2
The manufacturing costs of Mocha Industries for three months of the year are as follows: April May June Total Cost $54,546 57,092 61,082 Production 1,670 Units 2,340 3,390 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. $ per unit b. Using the high-low method, determine the total fixed costs. $

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