1.High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

Total Costs Units Produced

January $1,900,000 20,000 units

February 2,250,000 27,000

March 2,400,000 30,000

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.High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

Total Costs Units Produced

January $444,600 2,090 units

February 590,820 3,510

March 691,600 5,890

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

3.Contribution Margin

Weidner Company sells 22,000 units at $30 per unit. Variable costs are $24 per unit, and fixed costs are $40,000.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

a.Contribution margin ratio %

b.Unit contribution margin $ per unit

c.Income from operations $

4.Contribution Margin

Sally Company sells 19,000 units at $47 per unit. Variable costs are $37.60 per unit, and fixed costs are $64,300.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

a.Contribution margin ratio (Enter as a whole number.) %

b.Unit contribution margin (Round to the nearest cent.) $ per unit

c.Income from operations $