Cost Behavior Cover-toCover 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 15,000 shelves $165,000 $13,250 $125,000 30,000 shelves 330,000 35,500 125,000 60,000 shelves 660,000 70,000 125,000 75,000 shelves 825,000 87,250 125,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber " Utilities " '1 Depreciation 2. For each cost, determine the xed portion of the cost, and the perunit variable cost. If there is no amount or an amount is zero, enter "0'. 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 of Cost (per Unit) Ilrilirinc 2. For each cost, determine the xed portion of the cost, and the perrunit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs 2 (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 of Cost (per Unit) Lumber Utilities HUG HUG Depreciation HighsLow Biblio Files Company is the chief competitor of CoveretOrCover Company in the booksheif business. Bibiio les 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 275 6,250 March 1,000 15,000 April 8,775 133,750 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 highlow method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced] + Fixed Cost. Comolete the following table. HigheLow Biblio Files Company is the chief competitor of Cover-toCover Company in the bookshelf busmess. Biblio Files is analyzing its manufacturing costs, and has compiled the followmg 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 $65,500 February 275 6,250 March 1,000 15,000 April 3,775 133,750 May 1,750 32,500 June 3,015 48,000 1. From the data previously prowded, help Biblio Files Company estimate the fixed and variable portions of its total costs using the highlow 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 Gal: 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 i: E 8,775 3. Why does the total cost computed for4,360 units not match the data for January? A a. The highelow method is accurate only for months In which production is at full capacity. b. The highlow method only gives accurate data when xed costs are zero. c. The highlow method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest. cl. The highelow method gives accurate data only for levels of production outside the relevant range. Contribution Margin Review the contribution margin income statements for CoveretoeCover 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 82,500 units during the year.