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) below.

Units	Total	Total	Total Machine
Produced	Lumber Cost	Utilities Cost	Depreciation Cost
11,000 shelves	$132,000	$13,650	$125,000
22,000 shelves	$264,000	$26,300	$125,000
44,000 shelves	$528,000	$51,600	$125,000
55,000 shelves	$660,000	$64,250	$125,000

1. Determine whether the costs in the table are variable, fixed, mixed, or none of these.

	Variable Cost	Fixed Cost	Mixed Cost	None of these
Lumber
Utilities
Depreciation

Points:

3 / 3

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 x N) + Fixed Cost. Complete the table below with your answers.

Cost

Fixed Portion of Cost

Variable Portion of Cost (per Unit)

Lumber

Utilities

Depreciation

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) below.

Month	Number of Units Produced	Total Cost
January	4,360	$65,600
February	225	$6,250
March	1,000	$15,000
April	5,225	$56,250
May	1,750	$32,500
June	3,015	$48,000

1. From the data provided above, 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 Units Produced) + Fixed Cost. Complete the table below.

Total Fixed Cost	Variable Cost per Unit

Points:

0 / 2

2. With your Total Fixed Cost and Variable Cost per Unit from the High-Low Method, calculate the total cost for the following values of N (Number of Units Produced).

Number of Units Produced

Total Costs

3,500

4,360

5,225

Review the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the table below 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)

Unit contribution margin

Break-even sales (units)

Break-even sales (dollars)

Cover-to-Cover Company

Contribution Margin Income Statement

For the Year Ended December 31, 2016

1

Sales

$424,000.00

2

Variable costs:

3

Manufacturing

$233,200.00

4

Selling

21,200.00

5

Administrative

63,600.00

318,000.00

6

Contribution margin