Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow. Month Number of Units Produced 4,360 January Total Cost $65,600 $6,250 February 250 March 1,000 $15,000 April 5,000 $77,500 May 1,750 $32,500 June 3,015 $48,000 1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the High-Low Method. Recall that Total Costs = (Variable Cost Per Unit x Units Produced) + Fixed Cost. Complete the following table. Total Fixed Cost Variable Cost per Unit $3,750 X $10.00 X Points: 0/2 2. With your Total Fixed Cost and Variable Cost per Unit from the High-Low Method, compute the total cost for the following values of N (Number of Units Produced). Number of Units Produced Total Costs 3,500 4,360 $38,750 X $87,950 X $101,250 X 5,000 Points: 0/3 Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) 25% X 40% X Unit contribution margin Break-even sales (units) Break-even sales (dollars) Points: 078 Feedback Income Statement - Cover-to-Cover For the Year Ended December 31 Sales $424,000.00 2 Variable costs: Manufacturing $212,000.00 Selling 21,200.00 Administrative 63,600.00 296,800.00 Contribution margin $127,200.00 7 Fixed costs: Manufacturing $5,000.00 Selling 4,000.00 Administrative 54,600.00 63,600.00 11 Income from operations $63,600.00 Income Statement - Biblio Files Contribution Margin Income Statement For the Year Ended December 31 Sales $424,000.00 Variable costs: Manufacturing $169,600.00 Selling 16,960.00 5 Administrative 33,920.00 220,480.00 Contribution margin $203,520.00 Fixed costs: Manufacturing $121,920.00 Selling 8,000.00 Fixed costs: Manufacturing $121,920.00 Selling 8,000.00 10,000.00 Administrative 139,920.00 11 Income from operations $63,600.00 Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. If required, round answers to the nearest dollar. 1. If Cover-to-Cover Company wants to increase its profit by $40,000 in the coming year, what must their amount of sales be? Points: 071