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EX 6-7 High-low method Obj. 1 Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable
EX 6-7 High-low method Obj. 1 Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 200,000 $11,200,000 300,000 14,800,000 475,000 21,100,000 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 400,000 units of production.EX 6-11 Break-even sales and sales to realize operating income Obj. 3 For the current year ended March 31, Kadel Company expects fixed costs of $34,200,000, a unit variable cost of $930, and a unit selling price of $1,500. a. Compute the anticipated break-even sales (units). b. Compute the sales (units) required to realize operating income of $5,700,000.EX 6-21 Sales mix and break-even sales Obj. 5 Rosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $1,450,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $85 $50 Gloves 60 35 a. Compute the break-even sales (units) for the overall company's mix of product, M. b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?EX 6-23 Margin of safety Obj. 5 a. If Kirwan Company, with a break-even point at $2,080,000 of sales, has actual sales of $3,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? b. If the margin of safety for Kirwan Company was 25%, fixed costs were $1,500,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
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