Cost Behavior 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. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 4,000 shelves $48,000 $5,600 $120,000 8,000 shelves 96,000 10,200 120,000 16,000 shelves 192,000 19,400 120,000 20,000 shelves 240,000 24,000 120,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Variable Cost Utilities Mixed Cost Depreciation Fixed Cost 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "O". Recall that, for N - Number of Units Produced, Total Costs = (Variable Cost Per Unit X N) + Fixed cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Fixed Portion Variable Portion Cost of Cost (per Unit) of Cost Lumber 0 $ 12 Utilities 1,000 1.15 Depreciation 120,000 0 Feedback 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. Units Produced Total Cost January 4,360 units $65,600 February 300 6,250 March 1,000 15,000 April 8,800 133,750 June May 1,750 32,500 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 1,750 15 2. with your Total Fixed Cost and Variable Cost per unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced). Number of Units Produced Total Cost 3,500 54,250 4,360 67,150 8,800 133,750 3. Why does the total cost computed for 4,360 units not match the data for January? a. The high-low method is accurate only for months in which production is at full capacity. Units Produced Total Cost 3,500 54,250 4,360 67,150 8,800 133,750 3. Why does the total cost computed for 4,360 units not match the data for January? a. The high-low method is accurate only for months in which production is at full capacity. b. The high-low method only gives accurate data when fixed costs are zero. c. The high-low method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest. d. The high-low method gives accurate data only for levels of production outside the relevant range.