Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required: 1. Compute the selling price per composite unit. 2. Compute the variable costs per composite unit. 3. Compute the break-even point in composite units. 4. Compute the number of units of each product that would be sold at the break-even point. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the selling price per composite unit. Selling price per composite unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the variable costs per composite unit. Variable costs per composite unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the break-even point in composite units. Break-even point composite units Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the number of units of each product that would be sold at the break-even point. Desk Chairs Unit sales Required information The following information applies to the questions displayed below.] Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month NP Uw Units Sold 319,500 164,500 264,500 204,500 289,500 189,500 Total Cost $157,000 100, 750 205, 100 99,500 201,000 111,500 Units Sold 360,500 269,500 76, 100 149,500 93,500 99,500 Total Cost $281,644 151,250 65,500 130, 125 93,500 82,150 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of Variable Cost per unit Change in cost Cost at high point minus cost at low point Change in volume Volume at high point minus volume at low point High-Low method - Calculation of Fixed Costs Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago