Contribution Margin Shaded cells have feedback. Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year. Cover-to-Cover Company Biblio File Company Contribution margin ratio (percent) % % Unit contribution margin Break-even sales (units) Break-even sales (dollars) $ Points: 0/8 Feedback Check My Work Review the definitions of contribution margin ratio and unit contribution margin. Also review the formulas for break-even in terms of units sold and sales dollars. Cost Behavior Shaded cells have feedback. 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. Units Total Total Total Machine Produced Lumber Cost Utilities Cost Depreciation Cost 4,000 shelves $48,000 $5,600 $130,000 8,000 shelves 96,000 10,200 130,000 16,000 shelves 192,000 19,400 130,000 20,000 shelves 240,000 24,000 130,000 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. Number of Units Produced Total Cost January 4,360 $65,600 February 275 6,250 March 1,000 15,000 April 5,025 101,250 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 x Number of Units Produced) + Fixed Cost. Complete the following table. Total Fixed Cost Variable Cost per Unit $750 $20.00 Points: 2/2 1 Sales 2 Variable costs: 3 Manufacturing expense Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2017 $254,400.00 $424,000.00 4 Selling expense 5. Administrative expense 6 Contribution margin 21,200.00 63,600.00 339,200.00 $84,800.00 7 Fixed costs: Manufacturing expense $5,000.00 Selling expense 4,000.00 10 Administrative expense 12,200.00 21,200.00 11 Income from operations $63,600.00 Cost Behavior High-Low Contribution Margin Income Statement-Cover-to-Cover Income Statement - Biblio Files Sales 2 Variable costs: S Manufacturing expense Selling expense Administrative expense Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y7 $424,000.00 $169,600,00 16,960.00 67,840.00 254,400.00 $169,600.00 6 Contribution margin 7 Fixed costs: " Manufacturing expense $88,000.00 Selling expense 8,000.00 10 Administrative expense 10,000.00 106,000.00 11 Income from operations $63,600.00 Check My Work