Press Publishing Corporation has two major magazines: Star Life and Weekly News. During 2012, Star Life sold 3 million copies at $1.00 each, and Weekly News sold 2.1 million copies at $1.10 each. Press Publishing accumulated the following cost information:

Required:
1. Use the high-low method to estimate the per-unit variable and total fixed manufacturing costs of each magazine. (Round the variable cost rate to three decimal places.)
2. If all selling expenses are fixed and they total $500,000 for Star Life and $400,000 for
Weekly News, prepare contribution margin income statements for the two magazines at sales of 3 million copies each.
3. Which magazine is more profitable at sales of 2 million copies?
4. Interpretive Question: If the same total dollar amount spent on either magazine will result in the same number of new subscriptions, which magazine should beadvertised?

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Weekly News Star Life Copies Produced Manufacturing Cost Copies Produced Manufacturing Cost Month 400,000 300,000 400,000 200,000 250,000 200,000 240,000 200,000 180,000 230,000 200,000 200,000 $170,000 105,000 100,000 90,000 130,000 150,000 110,000 135,000 105,000 108,000 115,000 112,500 January February March S170,000 150,000 180,000 120,000 140,000 125,000 130,000 130,000 110,000 130,000 125,000 126,000 300,000 150,000 130,000 120,000 200,000 250,000 150,000 200,000 150,000 150,000 150,000 150,000 April May June July August September October November December