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HOW ME NOW BE 6-1 High-low method Obj. 1 The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Total

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HOW ME NOW BE 6-1 High-low method Obj. 1 The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Total Costs Units Produced January $1,890,000 22 500 units February 2,800,000 35,000 March 4,230,000 55,000 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. BE 6-2 Contribution margin Obj. 2 Waite Company sells 250,000 units at $120 per unit Variable costs are $78 per unit, and fixed costs are $8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. SNOW WE NOW Obj. 3 SHOW ME HOW BE 6-3 Break-even point Freese Inc, sells a product for $650 per unit. The variable cost is $455 per unit, while fixed costs are $4,290,000. Determine (a) the break even point in sales units and (b) the break-even point if the selling price were increased to $655 per unit. BE 6-4 Target profit Obj. 3 Beard Company sells a product for $15 per unit. The variable cost is $10 per unit, and fixed costs are $1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $100,000 SHOW ME NEW SHOW MENEM BE 6-5 Sales mix and break-even analysis Obj.5 Conley Company has fixed costs of $17,802,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $180 $ 99 581 Zora 225 135 90 The sales mix for products Yankee and Zoro is 80% and 20%, respectively. Determine the break- even point in units of Yankee and Zoro

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