High-Low Method

Ziegler 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
3,795			$347,760
1,495			223,560
2,330			274,230

a. Determine the variable cost per unit and the total fixed cost.

Variable cost: (Round to the nearest dollar.)	$fill in the blank 1 per unit
Total fixed cost:	$fill in the blank 2

b. Based on part (a), estimate the total cost for 1,900 units of production.

Total cost for 1,900 units:

$fill in the blank 3

Relevant Range and Fixed and Variable Costs

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 72,000 to 114,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Components produced	72,000	91,200	114,000
Total costs:
Total variable costs . . . . . . . . .	$24,480	(d)	(j)
Total fixed costs . . . . . . . . . . . .	27,360	(e)	(k)
Total costs . . . . . . . . . . . . . . . . .	$51,840	(f)	(l)
Cost per unit:
Variable cost per unit . . . . . . .	(a)	(g)	(m)
Fixed cost per unit . . . . . . . . . .	(b)	(h)	(n)
Total cost per unit . . . . . . . . . .	(c)	(i)	(o)

Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.

Cost Report
Components produced		72,000		91,200		114,000
Total costs:
Total variable costs		$24,480	(d)	$fill in the blank 1	(j)	$fill in the blank 2
Total fixed costs		27,360	(e)	fill in the blank 3	(k)	fill in the blank 4
Total costs		$51,840	(f)	$fill in the blank 5	(l)	$fill in the blank 6
Cost per Unit
Variable cost per unit	(a)	$fill in the blank 7	(g)	$fill in the blank 8	(m)	$fill in the blank 9
Fixed cost per unit	(b)	fill in the blank 10	(h)	fill in the blank 11	(n)	fill in the blank 12
Total cost per unit	(c)	$fill in the blank 13	(i)	$fill in the blank 14	(o)	$fill in the blank 15

Break-Even Sales and Sales to Realize Income from Operations

For the current year ending October 31, Yentling Company expects fixed costs of $398,400, a unit variable cost of $50, and a unit selling price of $74.

a. Compute the anticipated break-even sales (units). fill in the blank 1 units

b. Compute the sales (units) required to realize income from operations of $91,200. fill in the blank 2 units

Contribution Margin Ratio

a. Yountz Company budgets sales of $1,050,000, fixed costs of $33,100, and variable costs of $147,000. What is the contribution margin ratio for Yountz Company? (Enter your answer as a whole number.) fill in the blank 1 %

b. If the contribution margin ratio for Vera Company is 54%, sales were $555,000, and fixed costs were $221,780, what was the income from operations? $fill in the blank 2

Break-Even Analysis

The Junior League of Yadkinville, California, collected recipes from members and published a cookbook entitled Food for Everyone. The book will sell for $34 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 7,800 books to break even on its $93,600 investment. What is the variable costs per unit assumed in the Junior Leagues analysis? (Round your answer to the nearest whole number.) $fill in the blank 1 per unit

Contribution Margin and Contribution Margin Ratio

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):

Sales	$41,200
Food and packaging	$14,804
Payroll	10,400
Occupancy (rent, depreciation, etc.)	8,756
General, selling, and administrative expenses	6,000
	$39,960
Income from operations	$1,240

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $fill in the blank 1 million

b. What is Wicker Company's contribution margin ratio? Round to one decimal place. fill in the blank 2 %

c. How much would income from operations increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $fill in the blank 3 million

Please Answer All Parts