Classify Costs lowing is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as variable, fixed, or mixed. 1. Cost of labor for hourly workers 2. Factory cleaning costs, $6,000 per month 3. Hourly wages of machine operators 4. Computer chip (purchased from a vendor) s. Electricity costs, $0.20 per kilowatt-hour 6. Metal 7. Salary of plant manager 8. Property taxes, $165,000 per year on factory building and equipment 9. Plastic 10. Oil used in manufacturing equipment 11. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used 12. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 13. Straight-line depreciation on the production equipment 14. Pension cost, $1.00 per employee hour on the job 15. Packaging Identify Cost Graphs The following cost graphs illustrate various types of cost behavior: Cost Graph One Cost Graph Two 0 Total Units Produced 0 Total Units Produced Cost Graph Three Cost Graph Four 0 Total Units Produced 0 Total Units Produced 0 lotal Units Produced 0 Total Units Produced For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: a. Total direct materials cost b. Electricity costs of $1,000 per month plus $o.10 per kilowatt-hour c. Per-unit cost of straight-line depreciation on factory equipment d. Salary of quality control supervisor, $20,000 per month e. Per-unit direct labor cost High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation CostsGross-Ton Miles January February March April May June Determine the variable cost per gross-ton mile and the fixed cost Variable cost (Round to two decimal places.) Total fixed cost $962,700 1,073,400 758,600 1,029,100 863,100 1,106,600 257,000 287,000 186,000 278,000 223,000 302,000 per gross-ton mile Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $38,200 $14,136 9,600 7,714 5,600 $37,050 $1,150 Income from operations Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) million b. What is Wicker Company's contribution margin ratio? Round to one decimal place. c. How much woul d income from operations increase if same-store sales increased by $2,300 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million Break-Even Sales Currently, the unit selling price of a product is $290, the unit variable cost is $240, and the total fixed costs are $765,000. A proposal is being evaluated to increase the unit selling price to $330. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $330, and all costs remain constant. units Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $436,800, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats Gloves a. Compute the break-even sales (units) for both products combined. $50 $40 130 80 units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats Baseball gloves units units Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class $9,362 7,171 3,387 40 30 550 250 Round-trip ticket price-economy class )It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.I required round the answers to nearest whole number a. Compute the break-even nurmber of seats sold on a single round-trip night for the overall product, E. Assume that the overall product is 10% business class and 90% economy class seats. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even seats Economy class seats at break-even seats Margin of Safety a. If Canace Company, with a break-even point at $292,000 of sales, has actual sales of $400,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number 1. 2. b. If the margin of safety for Canace Company was 25%, fixed costs were $1,630,750, and variable costs were 75% of sales, what was the amount of actual sales (dollars) (Hint: Determine the break-even in sales dollars first.)