Unifying Concepts: High-Low Method, Contribution Margins, and Analysis Press Publishing Corporation has two major magazines: Star Life and Weekly News. During 2009, 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 be advertised?

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