Company: Alpha Pharmaceuticals

Scenario: Cost Behavior Analysis

Cost Category	Fixed Cost ($)	Variable Cost per Unit ($)	Activity Level (Units)
Production Costs	100,000	5	20,000
Selling & Admin Costs	50,000	2	25,000

Requirements:

1. Cost Behavior Classification:
   • Classify each cost category (Production Costs and Selling & Admin Costs) as fixed or variable based on the provided data.

1. Total Cost Calculation:
   • Calculate the total cost for Alpha Pharmaceuticals at the activity level of 20,000 units and 25,000 units, respectively.

1. Cost-Volume-Profit (CVP) Analysis:
   • Perform a CVP analysis to determine the breakeven point in units and dollars for Alpha Pharmaceuticals, assuming a selling price of $10 per unit.

1. Contribution Margin Calculation:
   • Compute the contribution margin per unit and contribution margin ratio for Alpha Pharmaceuticals based on the provided cost structure.

1. Cost Estimation:
   • Estimate the total production costs if Alpha Pharmaceuticals plans to produce 30,000 units, considering the fixed and variable cost components.