1. Bayshore, Incorporated, has collected the following cost data for various levels of activity:

Month	Clients Served	Total Cost
April	3,000	$ 39,000
May	2,650	33,000
June	2,000	28,800
July	2,400	30,300

Required:

Using the high-low method, determine the variable cost per client served and the total fixed cost per month.

1. Raven Incorporated sells a single product for $54. Variable costs include $28.88 for each unit plus a $10 selling expense per unit. Fixed costs are $266,000 per month.

Required:

1. What is the contribution margin ratio?
2. What is the break-even sales revenue?
3. What sales revenue is needed to achieve a $266,980 per month profit?

3. Duncan had revenues of $340,000 in March. Fixed costs in March were $71,400, and profit was $98,600. Answer the following questions:

Required:

1. What was the contribution margin ratio?
2. What monthly sales volume (in dollars) would be needed to break even?
3. What was the margin of safety in dollars for March?

4. Edward Company currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $28.00. Edward currently produces 15,000 subcomponents at the following manufacturing costs:

	Cost per Unit
Direct materials	$ 11.20
Direct labor	6.70
Variable manufacturing overhead	5.30
Fixed manufacturing overhead	3.00
Total unit cost	$ 26.20

Required:

1. If Edward has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier?
2. If Edward has no alternative uses for the manufacturing capacity, what would be the maximum price per unit Edward should be willing to pay the supplier?
3. Now assume Edward would avoid $346,200 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier?

5. Kramer Corporation began the period with 5,600 units in process that were 100% complete for materials and 63% complete for conversion, and ended the period with 21,200 units completed and 5,800 units still in process. Work in process was 100% complete for materials and 74% complete for conversion costs.

Using the weighted-average method, compute the equivalent units of production for materials and conversion for the period.