Alpha Electronics

Scenario: Cost Behavior Analysis

Cost Category	Fixed Cost ($)	Variable Cost per Unit ($)	Activity Level (Units)
Production Costs	80,000	6	15,000
Selling & Admin Costs	50,000	3	20,000

Requirements:

1. Cost Behavior Classification:
   • Classify each cost category (Production Costs and Selling & Admin Costs) as fixed or variable based on the provided data.

1. Total Cost Calculation:
   • Calculate the total cost for Alpha Electronics at the activity levels of 15,000 units and 20,000 units, respectively.

1. Cost-Volume-Profit (CVP) Analysis:
   • Perform a CVP analysis to determine the breakeven point in units and dollars for Alpha Electronics, assuming a selling price of $20 per unit.

1. Contribution Margin Calculation:
   • Compute the contribution margin per unit and contribution margin ratio for Alpha Electronics based on the provided cost structure.

1. Cost Estimation:

Estimate the total production costs if Alpha Electronics plans to produce 25,000 units, considering the fixed and variable cost components