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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

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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 81,800 units during the year. Cover-to-Cover Company 20 % Biblio Files Company Contribution margin ratio (percent) 48 X Unit contribution margin 1 2.4 X Break-even sales (units) 21,200 x 58,300 X Break-even sales (dollars) 106,000 X 699,600 X TO Review the definitions of contribution margin ratio and unit contribution margin. Also review the formules for break even in terms of units sold and sales dollars. Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2048 Sales $409,000 Variable costs: Manufacturing expense $245,400 Selling expense 20,450 30 Check My Work more Check My Work uses remaining All work saved Email instructor Save and E Submit Assignment for Grading 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 compled t following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow. Total Cost Units Produced January 4,360 units $65,600 February 300 6,250 March 1,000 15,000 April 4,800 96,250 May 1,750 32,500 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-low method. Recall that Total Costs - (Variable Cost Per Unit Number of Units Produced) Fixed cost. Complete the following table, Total Fixed Cost Variable Cost per Unit 250 X 20.00 2. With your Total Fixed Cost and Variable Cost per Unit from the high-low method, computer the total cost for the following values of N (Number of Units Produced). Number of Units Produced Total Cost 3,500 70,250 X 17,450 X 4,800 96,250 X 3. Why does the total cost computed for 4,360 units not match the data for January 3. The high-low method is accurate only for months in which production is still capacity b. The high-low method only gives accurate data when boxed costs are more . The high-low method gives a formula for the estimated total cost and may not match evels of production other than the highest and lowest Check My Workmore Check My Woman

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