Cost Behavior Total Units Produced 4.000 sheves 8.000 shelves 16.000 shelves 20.000 shelves Total Lumber Cost Total Machine Depreciation Cost Utilities Cost $48.000 $95.000 192.000 240,000 $5.600 $10.200 19.400 24,000 $130,000 $130,000 $130,000 $130,000 Detemine whather the costs in the table are ariable fred mixed or none of these Lumber Utilities 2 Fo each cost, determine he ed port on of the oost and the per unit variable cost f there s no amount or an amount s zero enter V' Recal the forNe Number of Units Produced Total Costs a able Cost Per Unit x N) + Fored Cost Complete the ollo ng table with yo r Cost Foed Portion of Cos Portion of Cost (per Unit) Lumber S Utilities S High-Low Eiblio Files Company is the chief competior of Cover-to-Cover Company in the bookshelf busness Bilio Files is analyzing its manufacturing costs, and has compiled the following data for the first or months of the year Afer reviewing the data, answer questions(1) through (3) that follow Month January February March Apri May June Number of Units Produced Total Cost $85,800 250 1,000 5,000 1.750 3,015 6.250 $15.000 577,500 $32.500 $48.000 . From t the data previously provided, help Biblio Files Company estimate the fixed and variable portions of ts total costs using the High-Low Method Recal that Total Costs Variable Cost Per Un2 x Units Produced)Fixed Cost Comple'e the following table Coats (Variable Cost Total Fixed Cost Variable Cost per Unit 2 Wth your Total Fired 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 Costs 3,500 4,360 5,000 Contribution Margin Review the contnibution margin income statements for Cover-to-Cover Company and Biblio Fves 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 Files Company Contribution margin ratio (percent Break-even sales (units) Break-even sales (dollars) S Sales Mix Bibio Files Company is making plans for its next fiscal year and decides to sel two new types of bockshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings Type of Bookshelf Sales Pricer Unit Variable Cost per Unit Basic Deluxe $5.00 $9.00 $1.75 $8.10 he company is nterested n determ ng how many o each t e o bookShef would have to be sold order to break even we think o the asc and el e products as components o one overall e terp se product ca ed product would be S2.31 Fxed costs for the upcoming year are est ated at S346.962 Recall that the totals o all the sales m percents must be 100% Delen ne the amounts to complete the fol ing table ar bred the unit oont bution a r or the ombred Percent of Sales Mx Type of Bookshelf Basic Deluxe Break-Even Sales in Units Break-Even Sales in Dol lars 96 Target Profit Refer again to the income statements for Cover-to-Cover Company and Bibwo Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income. Answer questions (1) -(3) that follow, assuming that all data for the coming year is the same as the current year axcopt for the amcunt of sales. If required, round answers to the nearest dollar 1.If Cover-to-Cover Company wants to increase is profit by $30,000 in the coming year, what must their amount of sales be? 2. If B bio Files Company wants to increase its profit by $30,000 in the coming year, what must thair amount of sales be?S coming year 3. What would explain the difference between your answers for (1) and (2)? Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is available to cover foxed costs and provide income from operations O The answers are nct different; esch company has the same required sales amount for the coming year to achieve the desired target prot. O Cover-to-Cover Company's contribution margin ratio is lower, meaning that its more efficient in ins operations O The companies have goals that are not in the relevant range