1.Hudson CO. predicts fixed costs of $400,000 for 2019. Its one product sells for $170 per unit and it incurs variable costs of $150 per unit. The company predicts annual total sales of 25,000 units.

1. Compute the contribution margin per unit
2. Compute the break-even point in units using formula method
3. Prepare a contribution margin income statement at the break-even point

2. Using the information below apply the high-low method to determine the total fixed costs plus variable costs per unit.

Highest volume 4,000 units with Total cost $17,000

Lowest volume 1,600 units with Total cost of $9,800

3. Determine whether each of the following is best described as a fixed, variable, mixed, step-wise or curvilinear cost as the number of product units changes:
4. Rubber used to manufacture tennis balls
5. Depreciation
6. Electricity usage
7. Supervisory salaries
8. Sales persons commissions 7% for sales up to $100,000 and 10% for sales above $100,000