1. Thomas Train has collected the following information over the last six months.

Month	Units produced	Total costs
March	10,000	$25,600
April	12,000	26,200
May	19,000	28,000
June	13,000	26,450
July	12,000	26,000
August	15,000	26,500

Using the high-low method, what is the variable cost per unit?

Round to two decimal places.

2. Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:

	January	February	March	April	May	June	July
Number of rooms cleaned	250	160	200	150	285	170	260
Cleaning cost	$6,450	$4,060	$5,100	$4,100	$6,880	$4,200	$6,530

How much are estimated monthly variable costs using the high-low method?

Round to two decimal places.

3. Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $194,800, how many dollars of revenue must the company generate in order to reach the break-even point?

Round to two decimal places.

4. Tim Taylor has written a self improvement book that has the following cost characteristics:

Selling Price	$16.00 per book
Variable cost per unit:
Production	$4.00
Selling & administrative	2.00
Fixed costs:
Production	$98,000 per year
Selling & administrative	24,000per year

How many units must be sold to break-even?

Round to two decimal places.

5. Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100, unit variable cost is $45, and the fixed costs per month are $5,000. Themargin of safety in terms of sales revenue is:

Round to two decimal places.

6. What is relevant range?

7. Give two examples of costs that are variable costs and two examples of fixed costs.