Cover-to-Cover Companys a more acturer of the living for book The company has compled the following cost data and wants your help in determing the cost moniter reviewing the data complete regirements (1) and (2) that follow Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 4,000 shelves 48,000 $5,600 $120,000 1,000 shelves 96.000 10,200 120,000 16,000 shelves 192.000 19,400 120,000 20,000 shelves 240,000 24,000 1 Costs that vary in proportion to changes in the activity base 1. Determine whether the costs in the table we are mixed, or none of these Lumber Verable Cost Deprecation 2. For each cost, termine the portion of the cost and the private out there is no motoren amount is, entro Recall that for Number of Produced, Toca Cote (Variable Cost Per Unt 0 + Fe Cost Complete the folowing table with your answers, Round variable portion of cost (per unit) answers to two decimal places Fixed Portion Variable Portion of cost of Cost (per unit) Lumber lud III Depreciation High-Low Biblio Files company is the chief competitor of Cover to-Cover Company in the bookshelf business. Bolo Fies is analyzing its manufacturing cores, and has compiled the foowing data foethe Tret six months of Year. After reviewing the data, answer questions (1) through (3) that follow Units Produced Total Cost January 4,360 units $65.600 February 275 6,250 March 1.000 15.000 April 73,750 May 1,750 32,500 June 3,015 65,000 1. From the data previously provided help to les company estimate the fived and variabile portions of its total costs using the high low method. Recall that Total Conte (Variable Cost ter Unitx Number of Produced) Pied Cott. Corte the following table Total Fixed cost Variable cost per Unit 2. win your Tun Pied Court and variable Comt per unit from the high-low method, compute the total cost for the tutowing username or units produced) Number of Units Produced Total Cost 40 4.775 Heview the contribution mari income statements for Cover-to-Cover Company and Bio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 78.800 units during the Year Cover-to-Cover Biblie Fles Company Company Contbubon martie percent) Unit contbution margin Break even sales (units) Break-even sales (dollars) Review the definition of contribution margin vasto and unt contribution maryn. Also review the formulas for break even in terms of units well and selecter Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2018 199,000 Variable costat Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2048 Sales $.194,000 Variable costs: Manufacturing expense $236,400 Selling expense 19,700 Administrative expense 59,100 (315,200) Contribution margin $78,800 Fixed costs Manufacturing expense $5,000 Selling expense 4,000 Administrative expense 10,700 (19,700) Operating income $59,100 Income Statement - Biblia Files Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales 5J94,000 Variable costs Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2015 Sales $394,000 Variable costs Manufacturing expense 5157,600 Selling expense 15,760 Administrative expense 63.040 (236,400) Contribution margin 5157,600 Fixed costs Manufacturing expense $50.500 Selling expense 8.000 Administrative expense 10,000 (90.500) Operating income 559,100 Sales Mix es company mang plans for its next nucal year and decides to sell two new types of bookshelves, tosic and Deluwe. The company has compiled the following estimates for the new product offerings Type of Sales Price Variable Cost Bookshell per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 Sales Price Bolio Files Company in making plans for its next focal year and decides to sell too new types of bookshelves, Bask and Delure. The company has compled the following estimates for the new product offerings Type of Variable Cost Bookshell per Unit per Unit Bask $5.00 51.75 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 event we think of the base and Deleucts as components of one overal terre product called "Combined the unit contribution murgin for the combined product would be $231. Fedcons for the upcoming year arestimated at $46,500. Recall that the total of the same percent must be 100W Determine the amounts to complete the following table Type of Percent of Break-even Sales Break-even Sales Bookshell Sales Mix in Units in Dollars Basic De Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblo Files Comey on their respective Income Statement. Note that both companies have the same sales and net income, Answer question (1)-(3) that follow, assuming that all data for the coming year is the same as the current yes, except for the amount of sales 1. Cover to-Cover Company wants to increase its profit by $40,000 in the coming year, what must their amount of sales be? 2. It iblaries Company wants to recrease its profit by $40,000 in the coming year, what must their amount of sales bo? 3. What would explain the afference between your answers for (1) and (2) i es company has a higher contribution margin ration, and more of each sa doter is available to cover food costs and provide operating income . Cover-to-Cover Company's contribution marynatis lower meaning that is more efficient in its operation The companies have gone that are not in the relevant range 4. The answers are not different each company has the same required amount for the coming year to achieve the desired target profit