Crux, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for 2016:

				Production and Sales in Units				Production Costs					Selling and Admin. Costs
January					105			$88,860					$23,570
February					117			97,600					25,200
March					97			83,007					22,495
April					106			89,600					23,720
May					115			96,200					24,950
June					125			103,500					26,250
July					128			105,670					26,690
August					132			108,550					27,200
September					138			112,978					28,030
October					126			104,200					26,400
November					124			102,750					26,150
December					108			91,050					23,990
	Total				1,421			$1,183,965					$304,645
	Average cost per unit							$833.19141					$214.38776

(a)

	Your answer is correct.

Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs.

		Fixed cost		Variable cost
Production costs		$		$
Selling and administrative costs		$		$

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(b)

The company estimates that production and sales in 2017 will be 1,650 units. Based on this estimate, forecast income before taxes for 2017. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

SalesIncome (loss)Production costsSelling and admin. costs		$
AddLess : SalesIncome (loss)Selling and admin. costsProduction costs
AddLess : Income (loss)Selling and admin. costsProduction costsSales
Production costsIncome (loss)Selling and admin. costsSales		$