Question
1. The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $190,770 2,980 units February
1.
The manufacturing costs of Ackerman Industries for the first three months of the year follow:
| Total Costs | Units Produced | |||
| January | $190,770 | 2,980 | units | |
| February | 138,240 | 1,440 | ||
| March | 215,040 | 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 |
2.
Megan Company has fixed costs of $1,654,830. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| $520 | $300 | $220 | |||||||
| ZZ | 680 | 440 | 240 | ||||||
The sales mix for Products QQ and ZZ is 65% and 35%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQ fill in the blank units b. Product ZZ fill in the blank units
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