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.

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

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 following table 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) that follow.

	Number of Units Produced	Total Cost
January	4,360	$65,600
February	275	6,250
March	1,000	15,000
April	4,775	73,750
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 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
?	?

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	?
4,360	?
4,775	?

Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files 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)	?	?
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, 20Y7

1	Sales			$424,000.00
2	Variable costs:
3	Manufacturing expense		$254,400.00
4	Selling expense		21,200.00
5	Administrative expense		63,600.00	339,200.00
6	Contribution margin			$84,800.00
7	Fixed costs:
8	Manufacturing expense		$5,000.00
9	Selling expense		4,000.00
10	Administrative expense		12,200.00	21,200.00
11	Income from operations			$63,600.00

Biblio Files Company

Contribution Margin Income Statement

For the Year Ended December 31, 20Y7

1	Sales			$424,000.00
2	Variable costs:
3	Manufacturing expense		$169,600.00
4	Selling expense		16,960.00
5	Administrative expense		67,840.00	254,400.00
6	Contribution margin			$169,600.00
7	Fixed costs:
8	Manufacturing expense		$88,000.00
9	Selling expense		8,000.00
10	Administrative expense		10,000.00	106,000.00
11	Income from operations			$63,600.00

Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings.

Type of Bookshelf	Sales Price per Unit	Variable Cost per Unit
Basic	$5.00	$1.75
Deluxe	9.00	8.10

The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called Combined, the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $346,962. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table.

Type of Bookshelf	Percent of Sales Mix	Break-Even Sales in Units	Break-Even Sales in Dollars
Basic	?	?	?
Deluxe	?	?	?

Refer again to the income statements for Cover-to-Cover Company and Biblio 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, except for the amount of sales.

1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be?

$?