A) Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: ( answered in2 decimal)

Month	Number of Cavities Filled	Total Cost
January	450	$5,250
February	575	6,250
March	700	6,500
April	300	5,300
May	500	5,950
June	350	5,300
July	600	5,600
August	675	6,500
September	425	5,200

Required:

1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.

2. Using these estimates, calculate Mountains total cost for filling 400 cavities.

B) Riverside Inc. makes one model of wooden canoe. Partial information for it follows: (answered in 2 decimal)

Number of Canoes Produced and Sold
		495		645		795
Total costs
Variable costs	$	71,280		?		?
Fixed costs		149,600		?		?
Total costs	$	220,880		?		?
Cost per unit
Variable cost per unit		?		?		?
Fixed cost per unit		?		?		?
Total cost per unit		?		?		?

Required:

1. Complete the table.

3. Suppose Riverside sells its canoes for $518 each. Calculate the contribution margin per canoe and the contribution margin ratio.

4. Next year Riverside expects to sell 845 canoes. Complete the contribution margin income statement for the company.

C) Riverside Inc. makes one model of wooden canoe. Partial information for it follows: (answered in 2 decimals)

Number of Canoes Produced and Sold		550			750			900
Total costs
Variable costs	$	110,000		$	150,000		$	180,000
Fixed costs		99,000			99,000			99,000
Total costs	$	209,000		$	249,000		$	279,000
Cost per unit
Variable cost per unit	$	200.00		$	200.00		$	200.00
Fixed cost per unit		180.00			132.00			110.00
Total cost per unit	$	380.00		$	332.00		$	310.00

Riverside sells its canoes for $460 each. Next year Riverside expects to sell 1,000 canoes.

Required:

Complete the Riversides contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riversides original data. (Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)

D) Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.64 per mile driven. Joyce has determined that if she drives 2,750 miles in a month, her total operating cost is $875. If she drives 3,850 miles in a month, her total operating cost is $1,139.

Required:

1. Using the high-low method, determine Joyces variable and fixed operating cost components.

2. Complete the contribution margin income statement for Joyces service assuming she drove 1,950 miles last month. (Assume this falls within the relevant range of operations).

D) The following information pertains to the first year of operation for Crystal Cold Coolers Inc.:

Number of units produced		2,900
Number of units sold		2,300
Unit sales price	$	330
Direct materials per unit	$	60
Direct labor per unit	$	50
Variable manufacturing overhead per unit	$	14
Fixed manufacturing overhead per unit ($217,500/2,900 units)	$	75
Total variable selling expenses ($11 per unit sold)	$	25,300
Total fixed general and administrative expenses	$	64,000

Required:

Prepare Crystal Colds full absorption costing income statement and variable costing income statement for the year.