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Crane Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers
Crane Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 520,000 390,000 410,000 300,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $55,000 52,000 25,000 128,000 CRANE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2022 $ Save for later Attempts: 0 of 1 used Submit Answer Current Attempt in Progress Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable costs $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. Reduce variable costs to 56% of sales. 2. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income? Carla Vista Corp. has collected the following data concerning its maintenance costs for the past 6 months. July August September October November December Units Produced 17.280 30,720 34,560 21.120 38,400 36.480 Total Cost $34,560 46,080 52,800 36,480 71,520 59,520 (a1) Your Answer Correct Answer Your answer is correct Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, eg 2.25.) Variable cost per unit $ 1.75 Solution Attempts: 1 of 1 used (a2) Compute the fixed cost elements using the high-low method. Fixed costs $
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