Fellx & Company reports the following information. Period Units Produced Total Costs 1 0 $ 4,700 2 600 4,000 3 1,000 4,400 1,400 5,000 1,800 4,100 2,200 4,300 7 2,600 8,800 3,000 16,200 3,400 5,000 10 3,800 12,490 4 5 6 9 Exercise 21-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2,820 units are produced. (1) Use the high-low method to estimate the fixed and variable components of total costs (2) Estimate total costs if 2,820 units are produced. High-Low method. Calculation of variable cost per unit High-Low method - Calculation of fixed costs 25 Total cost at the highest volume Variable costs at highest volume Highest volume Variable cost per unit Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume Lowest volume Variable cost per unit Total variable costs at lowest volume Totalfixed costs (2) Estimated cost if 2,820 units are produced: Estimated total cost Viva sells its waterproof phone case for $95 per unit. Fixed costs total $119,700, and variable costs are $38 per unit (1) Determine the contribution margin per unit. per unit per unit per unit Contribution margin (2) Determine the break-even point in units. Numerator: Denominator: Break Even Units Break even units Sunn Company manufactures a single product that selis for $155 per unit and whose variable costs are $124 per unit. The company's annual fixed costs are $480,500 (a) Compute the company's contribution margin per unit Contribution murgin (b) Compute the company's contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Numerator: Denominator: Break Even Units Break even units (d) Compute the company's break-even point in dollars of sales Numerator: Denominator: Break Even Dollars Break-even dollars Viva sells its waterproof phone case for $110 per unit. Fixed costs total $212,000, and variable costs are $44 per unit. (1) Determine the contribution margin ratio. per unit Contribution margin Contribution Margin Ratio Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio (2) Determine the break-even point in dollars Numerator Denominator 1 1 Break-Even Point in Dollars Break-even point in dollars Zulu sells its waterproof phone case for $110 per unit. Fixed costs total $242,000, and variable costs are $50 per unit Compute the units that must be sold to get a target income of $214,000 Units to be sold to achieve targeted Income Denominator: Numerator: Units to Achieve Target Units to achieve target
