Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost cate, and wants your help in determining the cour behavior. After reviewing the date, complete requirements (1) and (2) that follow. Total Units Produced Lumber Cost $144,000 Total Utilities Cost $14,800 Total Machine Depreciation Cost $125,000 12,000 shelves 24,000 shelves 125,000 48,000 shelves 288,000 576,000 720.000 28,600 56,200 70,000 125,000 60,000 shelves 125,000 1. Determine whether the costs in the table are variables, muest or none of these Variable Cont Fixed Cost Lumber Mixed Cost None of these Oo Utilities Depreciation Point 313 15 Points 2. For each cost, determine the fixed portion of the cost, and the per unit variable cost. If there is no amount of an amount is zavo, antet "O". Recial that for N-Number of Units Produced. Total Costs (Variabile Cost Per Untx N) + Fixed Cost Complete the following table with your answers Cost Food Portion of Cost Varuble Portion of Cost (per unit) Lumber s S Utilities Depreciation Biblo Pies Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Bolo Fies is analyzing its manufacturing costs, and has compiled the foliowing data for the first six months of the year. After reviewing the date, answer questions (1) through (3) that follow. January February Number of Units Produced 4,360 250 1,000 Total Cost $65,000 6,250 March 15,000 April 56,250 5.250 1.750 May 32.500 48.000 June 3,015 1. From me data previously provided, hep Elbilio Files Company estimate the foxed and variable portions of its total costs uning the high-bw method. Recal shat 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 Fed 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 5,250 Points 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 gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest The high-low method is accurate only for months in which production is a full capacity, The high-low method only gives accurate data when fixed costs are zero. The high-low method gives acourate data only for levels of production outside the relevantage Shaded cols have led Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels Complete the followin from the data provided in the income statements. Each company sold 84,800 units during the year. Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) Cover-to-Cover Company 15% X $2.00 X 21,200 X s Bibllo Flles Company 40% $2.00 530 X $ Points Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2017 Sales $424,000.00 Variable costs: $233,200.00 Manufacturing expense Selling expense 21,200.00 Administrative expense 63,600.00 318.000.00 $106,000.00 16 Contribution margin Fixed costs: 3 Manufacturing expense 9 Selling expense $5.000.00 4,000.00 33.400.00 10 Administrative expense 42,400.00 1. Income from operations $63,600.00 Check My Work Cost Behavior High-Low Contribution Margin Income Statement - Cover-to-Cover Income Statement Biblio Files Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2047 Sales $424,000.00 Variable costs: 3 $169,600.00 Manufacturing expense Setting expense 16,96000 Administratie expense 67,840.00 254400.00 Contribution margin $169.600.00 Fixed costs: $88.000.00 Manufacturing expense Selling expense B00000 10,000.00 ministive expense 106,000.00 Income from stations 565.600.00 Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and for the new product offerings. Type of Bookshelt Sales Price per Unit Variable Cost per Unit $1.75 Basic $5.00 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 components of one overall enterprise product called "Combined," the unit contribution margin for the Combined product wou estimated at $346,962. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complet 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 components of one overall enterprise product called "Combined." the unit contribution margin for the Combined product would be $2.31. F estimated at $346,962. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following Type of Bookshelf Percent of Sales Mix Break-Even Sales In Units Break-Even Sales in Dollars Basic % $ Deluxe kshelf would have to be sold in order to break even if we think of the Basic and Deluxe products as it contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are s must be 100%. Determine the amounts to complete the following table. nits Break-Even Sales in Dollars $ Points: C Motor again to the income statements for Cover to Cover Comowy and Bolo Fee Company on her specie nocne Stuent panas. Note that both companies have the same sales and not income, Answer questions (1) - (3) that follow assuming that all data for me coming year is the same as the current year, except for the amount of sales 1.1 Cover-to-Cover Company wants to increase its prolt by 530,000 in the coming year, what must their amount of sales be? $ Point Feedback Check My Work Examine the differences between the two companies, including the differences in clements of the twget profit formula 2. Bibio Files Company wants to increase its profit by 530,000 in the coming year, what must the wount of sales o Ponts