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8.. Company G had some Variable Costs/Expenses, some Fixed Costs/Expenses, and some Mixed Costs/Expenses. It used the High-Low Method to divide up the Mixed Costs

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8.. Company "G" had some Variable Costs/Expenses, some Fixed Costs/Expenses, and some Mixed Costs/Expenses. It used the High-Low Method to divide up the Mixed Costs into Variable and Fixed components. At last year's $800,000 Sales level, it had total Fixed Costs of $267,000 and total Variable Costs of $500,000. 8a.. How much was Breakeven in Dollars? 8b. If management makes a decision that increases fixed costs by $30,000 then what would the new Breakeven in Dollars be? 9.. Company " H " only makes one product that it sells for $60 per unit. Fixed manufacturing costs (i.e. fixed overhead) per year are $37,600 and fixed expenses per year are $68,000. Variable manufacturing cists include $24 per unit for direct materials, $15 per unit for direct labor, \$5 per unit for variable overhead. Variable expenses include $4 per unit sold. Company "H" sold 12,000 units of this product last year. Prepare a Contribution-Margin-Format Income Statement for the year. 10.. Use the same information in Question \#9 ... Management is considering making a change that will save the company $16,000 per year in fixed expenses (so the "new" fixed expenses per year will be $52,000 ) AND increase variable expense per unit by $3 per unit sold (so the "new" variable expenses per unit will be $7 per unit sold). Assuming Company " H " can still sell 12,000 units per year, should it make the change? (HINT: How much would the "new" income be? Would that be higher or lower than the income from your Income Statement in Question \#9?)

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