1)The manager of Able Car Inspection reviewed his monthly operating costs for the past year. His costs range from $4,100 for 1,100 inspections to $3,700 for 700 inspections.

1. Calculate variable cost per inspection. use the high-low method. round to the nearest cent

2. calculate the total fixed costs

3. write the equation and calculate the operating costs for 900 inspections

4. Draw a graph illustrating your total cost under this plan. show your costs at 700, 900, and 1,100 inspections

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2) For its top managers, Airborn Travel formats its income statements as follows:

Airborn Travel

contribution margin income statement

three months ended March 31, 2012

Sales revenue $318500

Variable costs $111475

contribution margin 207025

fixed costs 176000

operating income $31025

Airborn's relevant range is between sales of $253000 and $366000

1) calculate the contribution margin ratio

2) Prepare two contribution margin income statements: one at the $253000 level and one at the $366,000 level. (Hint: the proportion of each sales dollar that goes toward variable costs is constant within the relevant range.) enter losses with a minus sign or parentheses

3) compute breakeven sales in dollars.

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3) Hang Ten, Co., produces sports socks. The company has fixed costs of $91,080 and variable costs of $0.81 per package. Each package sells for $1.80.

1. Compute the contribution margin per package and the contribution margin ratio. (round answers to 2 decimal places)

2. Find the breakeven point in units and in dollars, using the contribution margin approach.