High-Low Biblo Fies Company is the chat competitor of Cover to Cover Company in the bookshell business. Biblotesis yang ts manufacturing coets, and has compiled the following data for the first six months of the year. Atur reviewing the dama awwer questions (1) through that follow Units Produced Total Cont 4,300 5.000 275 50 March 1,500 15.000 7.775 118.750 May 3.015 1. From the previously provided heres Compare the fundal portion of its comedelhavet Cost Per Untxumber of Produced red Cost February Agri June 2.000 Toiled Cost Variation per un 2. wm your own Couper to the who come the coloring of Total Cou Units Produced 3.500 4360 7.775 1. Why does the computed for some data for January The method is only forms in which cons b. Theodores courte dute what costs were d. The high-low method gives accurate data only for levels of production outside the relevantage Contri brin Review dbution mancoments for over to overcompany and Company overcome Statements Complete the owing to the data provided on the comments. Each company old 75,800 song the year Cover-to-Cover Bibliote Company Company Contribution margin ratio percent Unt contribution Break even said Income Sweet Cover-to-Cover Cover-to-Cover Company Contribution Margin income Stament For the Year Ended December 31, 2018 $34.000 Variable costs Mapene 2400 13200 (307,200) $76,800 Selling expense 19,200 Administrative expense 57,600 Contribution margin Fixed costs: Manufacturing expense $5,000 Selling expense 4,000 Administrative expense 10,200 Operating income Income Statement - Biblio Files Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2048 (19,200) $57,600 $384.000 Sales $153.600 15,360 Variable costs: Manufacturing expense Selling expense Administrative expense Contribution margin 61,440 (230,400) $153,600 Fixed costs $78,000 Manufacturing expense Selling expense 8.000 10.000 (96.000) Administrative expenso $57,600 Operating income Sales Mix . Type of Books Base Vw Cost per 31.75 8.10 Type Book Percent of sales revenals in Braten Sie in Units De 1. over to overcome was op 10.000.com Company reasy 0.30 e coming year whermano 3. What would explain the difference between your answers for (1) and (2)? amount of sales be? a. Biblik a mpany has a higher contribution margin ratio, and so more of each sales dollar is available to cover fixed costs and provide operating income pr Company's contribution margin ratio is lower meaning that it's more efficient in its operations. b. Cove b 0 The s have goals that are not in the relevant range, d. The d are not different; each company has the same required sales amount for the coming year to achieve the desired target profit