Homework Chapter 1. The accountant of Elton industries has collected the following monthly expenses data for use in analyzing the cost behavior of maintenance costs. Month IC TMH 1 $2900 300 2 3000 400 3 3600 600 4 4500 790 5 3200 500 6 4400 800 a. Determine the FC and VC using the high-low method. b. Prepare the graph, and identify the FC and VC. Use 100 hour increments and S1000 cost increments. 2. In the month of June, Laurie's beauty salon gave 2700 haircuts, shampoos, and permanents at an average price of $30. During the month, FC were 526000 and VC were 60% of sales. a. Determine the CM in S. per unit, and as a ratio. b. Compute the BEP in S, and in units, using CM. cCompute the MOS in S and as a ratio. 3. Moran Co. reports the following operating results for the month of Aug.: sales S350000 (units 5000): VC S210000; and FC $90000. Management is considering the following independent courses of action to increase net income 1. Increase selling price by 10% with no change in total VC or units sold 2. Reduce VC to 55% of sales 3. Reduce FC by S10000 Compute the net income to be earned under each alternative. Which course of action will produce the highest net income? 4. Angelo Company developed the following information for the product it sells Sales price per unit S120 Eixed expenses Cost of goods sold S1.500,000 Selling expense $800,000 Administrative expense $500,000 Variable expenses Selling expense 40% of sales price Cost of goods sold S40 per unit Administrative expense S8 per unit For the year ended December 31, 2019, the company produced and sold 200,000 units of product. Instructions: (a) Prepare a CVP income statement using the contribution margin format (b) Compute the break-even point in units and in dollars (c) Compute the margin of safety in dollars and margin ratio. (d) By using contribution margin ratio, determine the sales dollars required to earn net income of $3,000,000