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ACCT&203 Unit 4 Review - Cost-Volume-Profit Analysis, Absorption and Variable Costing Try to complete all problems without using your class notes or textbook. 13. Ingram

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ACCT&203 Unit 4 Review - Cost-Volume-Profit Analysis, Absorption and Variable Costing Try to complete all problems without using your class notes or textbook. 13. Ingram Company manufactures office furniture. During the most productive month of the year, 3,500 desks were produced at a total cost of $84,400. In its slowest month, the company made 1,100 desks at a total cost of $46,000. Based on this information, compute the total fixed costs: 14. The Lemon company has current sales of $500,000. Variable costs are 65% of sales and fixed costs are $150,000. If sales increased by $80,000, compute the change in operating income. Specifically show whether income will increase or decrease. 15. Salter Inc. has a unit selling price of $40. The variable cost per unit is $25 and fixed costs are $135,000. The current sales level is 10,000 units. If the number of units sold increased by 5,000, how much will operating income change? Increase or Decrease? 16. The staff accountant for Greyline Company has compiled the following cost information for the months of January through June, of the current year. Month Total Costs Units January $342,000 2,500 February 332,000 2.800 March 288,000 1,600 April 385,000 3,200 May 396,000 3,600 305,000 2,200 June Compute the required sales in both units and sales dollars in order for the company to eam a profit of $50,000. Assume the selling price per unit is $71.00

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