Calculator Mastery Problem: Cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 5,000 shelves $60,000 $7,250 $120,000 10,000 shelves 120,000 13,000 120,000 20,000 shelves 240,000 24,500 120,000 25,000 shelves 300,000 30,250 120,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Variable Cost Utilities Mixed Cost Depreciation Fixed Cost 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "O". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Go to Settings to activate Windo Fixed Portion Variable Portion S 9:23 PM 7/14/2020 O SIV! Females Ha. Shannon Sharpe Ca... LeBron Praises 4.44 Watch New Englan. YouTube Maps News M Gma Calculator 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit X N) + Fixed cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Fixed Portion Variable Portion Cost of Cost of Cost (per Unit) Lumber Utilities Depreciation High-Low 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. Units Produced Total Cost January 4,360 units $65,600 February 275 6,250 March 1,000 8,775 15,000 133,750 April May 1,750 32,500 Activate Windows Go to Settings to activate Windo 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- 9:24 PM o s 7/14/2020 vas News M Gm Calculator 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 Number of Units Produced) + Fixed Cost. Complete the following table. Total Fixed Cost Variable Cost per Unit 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 Cost 3,500 4,360 8,775 3. Why does the total cost computed for 4,360 units not match the data for January? a. The high-low method is accurate only for months in which production is at full capacity. b. The high-low method only gives accurate data when fixed costs are zero. c. The high-low method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest. d. The high-low method gives accurate data only for levels of production outside the relevant range. Activate Windows Go to Settings to activate Window S 9:24 PM 7/14/2020 SU TUUToe A Maps News M Calculator Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 75,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) % 96 Unit contribution margin Break-even sales (units) Break-even sales (dollars)