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ABC Company has the following information about the utilities costs for last year: Month July August September October November December Machine Hours 1.472 1312 2,336
ABC Company has the following information about the utilities costs for last year: Month July August September October November December Machine Hours 1.472 1312 2,336 2.720 2,624 2,368 6A Utilities 9,920 9,248 13,360 14,880 14,480 13,480 15 Marks Required: Using the high-low method, compute the utilities cost would be for a month in which the company has machine hours of: 2,500 ABC Company produces two products: Pen and Pencil. The projected income for the coming year, segmented by product line, follows: $ $ Sales Less: Variable costs Contribution margin Less: Direct fixed costs Product margin Less: Common fixed costs Operating income Pen 300,000 100.000 200,000 28,000 172,000 Pengil 2.500.000 500.000 2,000,000 1,500,000 500,000 Total 2,800,000 600,000 2,200,000 1528,000 672,000 $ $ $ 100,000 572,000 Sales price for Pen Sale price for Pencil $ $ 30.00 per unit for 50.00 per unit for 10,000 50,000 units units ABC Company produces two products: Pen and Pencil. The projected income for the coming year, segmented by product line, follows: $ $ $ Sales Less: Variable costs Contribution margin Less: Direct Fixed costs Product margin Less: Common fixed costs Operating income Pen 300,000 100.000 200,000 28,000 172,000 Pensil 2500.000 500.000 2,000,000 1500000 500,000 Total 2,800,000 600,000 2,200,000 1 528,000 672,000 $ $ LE 100,000 572 000 $ Sales price for Pen Sale price for Pencil 30.00 50.00 per unit for per unit for 10,000 50,000 units units Required: Compute the sale mix of the two products. 11 Mark) 12 Marks Form a package (composite of the two products based on the sales mix, and compute the package [composite contribution margin
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