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. 1. Determine whether the costs in the table are varlable, fixed, mixed, or none of these. 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 " 0 ". Recall that, for N= Number of Units Produced, Total Costs =( Variable Cost per Unit N)+ Fixed Cost. Complete the following table with your answers. Feedback Check My Work Review the definitions for fixed, variable, and mixed costs, and the relationships between units produced and total cost for each type of cost. Recall that the high-low method may be used to separate a cost into its fixed and variable components. 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. 1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the High-LoWy Method. Recall that Total Costs =( Variable Cost Per Unit x Units Produced )+ Fixed Cost. Complete the following table. 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). 3. Why does the total cost computed for 4,360 units not match the data for January in the table at the top of this panel? The High-Low method only gives accurate data when fixed costs are zero. The High-Low method gives a formula for the estimated total cost and may not match levels of production other thn the highest and lowest. The High-Low method is accurate only for months in which production is at full capacity. The High-Low method gives accurate data only for levels of production outside the relevant range. Review the contribution margin income statements for Cover-to-Cover Company and Biblio Company on their respective Income Statements panels. Complete the following table from provided in the income statements. Each company sold 84,800 units during the year. Feedback Check My Work Review the definitions of contribution margin ratio and unit contribution margin. Also the formulas for break-even in terms of units sold and sales dollars. Cover-to-Cover Company Contrestion Margn Income Statement For the Yoar Ended December 31 is: 4.000909 12. Yeriable costs 1 Manufacturing 4. Ceting i) Administrative. 4. Cantribution margin 7. Find coste: * Manutacturing 3. Selling 4.03000 is Administratien is income from ageretioes io Contribution Margh Hecorne Staterment - Cover-to-Cowar income Stafeninst- Bblo Files Diblo Files cempany Contribebicn Margn lhoome stalectent For the Year Encede Decomber 31 Biblo files Campuny is making pians for its next fiscal year, and decides to sell fwo new bypes of bookishneves, dasec and Delure. The compary has compited the folcurig estimates for the now product offerings. The company is interested in detemining how many of eech type of bookshev wobld have to be sold in onder to break even if we think of the easc and deike product as components of one overall enterprise product caled "Cambined," the unit contnbution margin for the Combined aroduct would be 52.31. Fixed costs for be upeaning year are estinnated af 5346.962. Recall that the fotals of al the sgles my percents must be toos Devermine the amounfs to conciere the folowing rabie: and net income Aaswer quesbons (1) - (3) fat follow. astumang that af data for the coming yoe is the same as the cumert ywar; except fy the amour of sales. if required round annwers to the aequest dalar. 1. If Cover-to-Cover Company aiants to increase is prolt by $20,000n the coming year, what murt ther arnount of sales be