1)Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: Selling price per unit $35 Manufacturing cost $4,000 per month plus $17 per unit Administrative expense $2,500 per month plus $2.50 per unit Sales commissions 15% of sales Advertising expense $2,000 per month

a)If Buffo expects to produce and sell 2,000 units next month, compute the total expected manufacturing cost.

b)If Buffo expects to produce and sell 5,000 units next month, compute the expected net operating income.

2) Total production costs for Gallop, Inc. are budgeted at $230,000 for 50,000 units of budgeted output and at $280,000 for 60,000 units of budgeted output. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25% more than budgeted fixed costs for 50,000 units. How much is Gallop's budgeted variable cost per unit of output

3)

At an activity level of 20,000 units produced, fixed costs total $30,000 and variable costs total $67,000. Assuming that this activity is within the relevant range, if 25,000 units are produced, then:

a)	total fixed costs are expected to be $37,500.
b)	variable cost per unit is expected to equal $2.68.
c)	fixed cost per unit is expected to equal $1.20.
d)	total cost per unit is expected to equal $3.88