22-6 22-7. 22-8

up to $80,000 on the vertical axis (SO 3) E22-4 Moines Company accumulates as the activity level. Determine variable and fixed ow method (SO 3) the following data concerning a mixed cost, using miles ts using the high Miles Total Driven Cost Miles Total Driven Cost January 8,000 $14,150 March 8.500 $15,000 February 7,500 13,600 April 8200 14,490 Compute the variable and fixed cost elements using the high-low method. BE22-5 Determine the missing amounts Determine missing amounts for contribution margin Variable e contri- n ratio? gement reaking Unit Selling Unit VariableContribution Contribution $250CMargin per Unit Margin Ratio (sO 5) Price $170 2. $500 3. (e) $200 $300 30% BE22-6 Leon Company has a unit selling price of $400, variable costs per unit of $260, and Compute the break-even point. fixed costs of $210,000. Compute the break-even point in units tion and (b) contribution margin per unit. BE22-7 using (a) the mathematical equa (SO 6) graph. For Longe is Company, variable costs are 70% of sales and fixed costs are S210000. Management's net income goal is $60,000. Compute the required sales needed to achieve man- Compute salesforarger net income. (SO 7) at the agement's target net income of $60,000. (Use the mathematical equation approach.) BE22-8 For Amos Company, actual sales are $1.200,000 and break-even sales are $900,000. Compute the margin of safety Compute (a) the margin of safety in dollars and (b) the margin of safety ratio. and the margin of safety ratio BE22-9 Sylvia Manufacturing Ine. had sales of $1,800,000 for the first quarter of 2012. In (so 8) making the sales, the company incurred the following costs and expenses. Prepare CVP income statemenI Variable $760,000 95,000 79,000 Fixed $540,000 (SO 9) Cost of goods sold Selling expenses Administrative expenses pany re a CVP income statement for the quarter ended March 31,2012 d ex- CVP BE22-10Alton Company's fixed overhead costs are $3 per unit, and its variable Compute net income under overhead costs are $8 per unit. In the first month of operations, 50,000 units are produced and absorption and variable e a short memo to the chief financial officer explaining which costing costing (SO 10) be. approach will produce the higher income and what the difference will