How many units does Caroll need to sell to break even? Would the per-unit profit differ if a salesperson sold 750 units or 1,100 units at the $8.00 unit selling price? Explain your answer.

Carol Case Template (21- Unsaved Luis A. Molina File Home Insert Draw Formulas Data Review View 24 4! Sensitivity K M N 0 P Q R S T u V W Caroll Manufacturing Manufacturing Cost Direct materials Direct labor Indirect labor Indirect material ity Factory Insurance Other overhead Total Manufacturing Costs Unit Total Variable Fixed Cost Cost $0.75 $0 $125 SO $0.20 $20 $0.00 $600 $0.10 $150 $0.00 $250 $0.50 $220 $290 $1,420 Cost of 1000 Units Total Per Unit $ 750.00 $ 0.75 S 1,250.00 5 1.25 $ 400.00 400.00 $ 0.40 S 600,00 600.00 $ 0.60 $ $ 250.005 0.25 $ 250.00$ 0.25 S 720.00$ 0.72 $ 4.220.00 $ 4.22 Administrative and selling Admin/Seling Expenses Total Costs 0.B0 $. $2.80 $1,420 S 600.00 0.80 $ 5,020.00 $ 5.02 Arial 11 - B als 25 > fx A C D F G H J Units of Direct Direct Indirect Indirect Factory Other 1 Week Output Materials | Labor Labor Materials Electricity Insurance Overhead 2 1 900 $600 $1,000 $360 $600 $230 $250 S620 3 21000 750 1250 400 500250 250 720 4 31200 500 15001 440 600 270 250 820 5 6 Enter F,V, or M DV VMF M F M M 7 8 Instructions: 9 The purpose of this exercise is to help you to understand how costs behave relative to activity volume and 10 how to differentiate between total and per-unit fixed, variable, and mixed costs. 11 12 1) Determine whether each of the manufacturing costs listed above are fixed, variable, or mixed 13 and enterF,V, or M into the appropriate boxes above 14 Hint: if the total cost of an itern is the same for all levels of output the cost is fixed; 15 if the unit cost of an item is the same for all levels of output, the cost is variable 16 otherwise, the cost is mixed 17 18 2) Once you determine the behavior of each manufacturing cost item, complete the 19 Manufacturing Costs table to the right, following the instructions below. 20 For items categorized as "V":Input to column L the computation for each variable cost tem. 21 For items categorized as 'F enter in column M the total fixed cost. 22 For items categorized as 'M': Follow instructions in 3, below. 23 NOTE: Some of the highlighted cells in columns Land M will remain blank. No need to enter zero 24 25 3) Mixed costs will have to be separated into their fixed and variable components using the 26 High-Low Method. Compute each component, showing all work in the High-Low Worksheet tab 27 Once you have computed each component, use Excel call references to feed the information 28 to the appropriate cols in the schedule to the right 29 30 4) Once columns L and have been completed, use the information in these two columns to compute 31 total manufacturing cost (column O), assuming 1,000 units are produced. DO NOT feed the totals from 32 the original given data. It is important that you know how to compute total costs even when the 33 total costs are not given in the problem 34 35 5) Finally, compute the unit costs in column P and the 36 Administrative and Selling data at the bottom of the table 37 38 39 40 41 42 43 44 + CostTemplate High-Low Worksheet 800 Units Admin/Selling Expenses 640 1200 Units Admin/Selling Expenses 960