17.500 A- ABC Company gathered the following information for the last six months Month Electricity Cost Machine Hours January $24.400 13.900 February 30,300 March 29,000 16,800 April 22.340 13.200 May 19,900 11,800 June 14,900 6,600 Required: Using the high-low method. Answer the following questions (1) Calculate the estimated variable portion of Electricity costs per machine hour? (2) Calculate the estimated fixed Electricity cost each month? (3) if it is estimated that 10,000 machine hours will be run in July, what is the expected total Electricity cost for July? (10 marks) B-The student union of AAA University is planning a one-day trip to the coast. The trip expected costs are as follow $ 18 $ 2 $ 900 Dinner (per student) Program (per student) Rental of buses Entertainment Advertising 3.80 0 1.30 The student union would like to charge $35 per student for the trip Required: 1. Calculate the contribution margin per student 2. Calculate the number of students who must join the trip to achieve break even 3. How many students must join the trip to achieve a target net income of $1,500? (7 Marks) C-XYZ Company income statement for April 2019 is shown below Total Per Unit Sales (20,000 units) $300,000 $15.00 Variable expenses 180,000 9.00 Contribution margin 120,000 $6.00 Fixed expenses 70,000 Net income $ 50,000 Required: Calculate the revised net income if the selling price increases by $1.50 per unit fixed expenses increase by $20,000, and the number of units sold decreases by 5%? (3 Marks) D-Management of Farah Corporation has asked your help as an intern in preparing some key reports for April. Direct labor cost was $52,000, direct material cost was $28.000 and manufacturing overhead was 60% of conversion cots. Required Calculate manufacturing overhead cost. (5 marks) E-Sun Company and Moon Company are identical in all respects except that most of Sun company costs are variable, and most of Moon company costs are fred. In case sales increase (for both companies), which of the two companies wil tend to realize the greatest increase income? Why