Exercise 19-4

Family Furniture Corporation incurred the following costs.

Identify the costs as variable, fixed, or mixed.

1.

Wood used in the production of furniture.

2.

Fuel used in delivery trucks.

3.

Straight-line depreciation on factory building.

4.

Screws used in the production of furniture.

5.

Sales staff salaries.

6.

Sales commissions.

7.

Property taxes.

8.

Insurance on buildings.

9.

Hourly wages of furniture craftsmen.

10.

Salaries of factory supervisors.

11.

Utilities expense.

12.

Telephone bill.

Exercise 19-10 In the month of March, Style Salon services580clients at an average price of $130. During the month, fixed costs were $28,470and variable costs were50% of sales.

Determine the contribution margin in dollars, per unit, and as a ratio. (Round answers to 0 decimal places, e.g. 1,225.)

Contribution margin	$
Contribution margin per unit	$
Contribution margin ratio		%

Using the contribution margin technique, compute the break-even point in dollars and in units. (Round answers to 0 decimal places, e.g. 1,225.)

Break-even sales	$
Break-even sales		units