Can you please help me with this question?Thank you

Question 1: (26 marks)

Dundar Mifflin manufactures and sells three products: X, Y, and Z. Annual fixed costs are $515,250 and data about the three products follow for 2017.

X

Y

Y

Sales

$150,000

$480,000

$790,000

Variable cost

80,000

175,000

290,000

Required:

1)Determine the breakeven point

2)The management expects sales to increase by 9% in 2018. What is the expected operating income in 2018?

Question 2: (24 marks)

Dundar Mifflin makes electronic product for the RCMP. The following data is for the first six months:

Direct Labor Hours

Manufacturing Overhead

January

45,000

$295,000

February

60,000

$320,000

March

57,000

$323,000

April

52,000

$247,250

May

34,000

$178,200

June

25,000

$162,500

Required:

1)Use the high-low method to estimate the cost formula

2)Estimate the total overhead cost at an activity level of 48,000 machine hours, using the separate estimates you obtained for its components.