High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

	Total Costs		Units Produced
January	$339,840		1,440	units
February	442,920		2,860
March	528,640		4,640

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.

a. Variable cost per unit	$fill in the blank 1
b. Total fixed cost	$fill in the blank 2

Contribution Margin

Harry Company sells 22,000 units at $17 per unit. Variable costs are $10.71 per unit, and fixed costs are $65,000.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

a. Contribution margin ratio (Enter as a whole number.)	fill in the blank 1	%
b. Unit contribution margin (Round to the nearest cent.)	$fill in the blank 2	per unit
c. Income from operations	$fill in the blank 3

Break-Even Point

Nicolas Enterprises sells a product for $40 per unit. The variable cost is $24 per unit, while fixed costs are $41,216.

Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $47 per unit.

a. Break-even point in sales units	fill in the blank 1 units
b. Break-even point if the selling price were increased to $47 per unit	fill in the blank 2 units