(1.)High-Low Method

The manufacturing costs of Gregory Industries for three months of the year are provided below.

	Total Costs		Production
January	$343,640		3,190 units
February	373,520		4,350
March	240,120		1,450

Using the high-low method, determine (a) the variable cost per unit and (b) the totalfixed cost. Round all answers to the nearest whole dollar.

a. Variable cost per unit	$
b. Total fixed cost	$

(2.)Contribution Margin

Harry Company sells 15,000 units at $39.00 per unit. Variable costs are $23.40 per unit, and fixed costs are $70,200.

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	$

(3.)Target Profit

Woodsman Company sells a product for $240 per unit. The variable cost is $105 per unit, and fixed costs are $445,500.

Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $151,470.

a. Break-even point in sales units	units
b. Break-even point in sales units if the company desires a target profit of $151,470	units

(4.)

Sales Mix and Break-Even Analysis

Michael Company has fixed costs of $1,341,860. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.

Product	Selling Price		Variable Cost per Unit			Contribution Margin per Unit
Q	$370		$190			$180
Z	240		170			70

The sales mix for products Q and Z is 90% and 10%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number.

a. Product Q ____ units b. Product Z ____units

(5.)

Operating Leverage

Decatur Company reports the following data:

Sales	$414,200
Variable costs	227,800
Fixed costs	137,300

Determine Decatur Company's operating leverage. Round your answer to one decimal place.

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