I am sending attached my assignment for unit 4...I only made a B on the first assignment..I'm not going to pay more than $20.00 if I can't get an A...so please respect that... Sharon Ragusa

Exercises EXERCISE 4-1. Operating Leverage [LO 5] John Diaz owns Pacific Electric, a large electrical contracting firm that provides services to building construction projects. The company has 2,000 employees and operates in three western states. Recently the company experienced large losses due to a downturn in the economy and a slowdown in construction. John thinks the losses were particularly large because his company has too much fixed cost. Required a. Expand on John's thought. How are the large losses related to fixed costs? b. Identify a way that John can turn potential fixed costs into variable costs. EXERCISE 4-5. High-Low Method [LO 2] Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered: Copy Machine Month Repair Expense Copies Made May $ 8,500 300,000 June 12,500 500,000 July 20,500 900,000 August 16,500 700,000 September 10,500 400,000 Required Determine the fixed and variable components of repair expense using the high-low method.Use copies made as the measure of activity. EXERCISE 4-11. CVP Analysis [LO 3] Gabby's Wedding Cakes creates elaborate wedding cakes.Each cake sells for $600.The variable cost of making the cakes is $250,and the fixed cost per month is $7,700. Required a. Calculate the break-even point for a month in units. b. How many cakes must be sold to earn a monthly profit of $10,000? EXERCISE 4-12. CVP Analysis, Profit Equation [LO 3] Clyde's Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40. Required a. What is the break-even point per month in sales dollars? b. What level of sales dollars is needed for a monthly profit of $60,000? c. For the month of July, the marina anticipates sales of $1,000,000. What is the expected level of profit? EXERCISE 4-13. Contribution Margin [LO 3] Rhetorix, Inc. produces stereo speakers.The selling price per pair of speakers is $900. The variable cost of production is $300 and the fixed cost per month is $60,000. Required a. Calculate the contribution margin associated with a pair of speakers. b. In August, the company sold six more pairs of speakers than planned.What is the expected effect on profit of selling the additional speakers? c. Calculate the contribution margin ratio for Rhetorix associated with a pair of speakers. (Round to 2 decimal places.) d. In October, the company had sales that were $7,000 higher than planned.What is the expected effect on profit related to the additional sales? (Round to the nearest dollar.) EXERCISE 4-18. Constraints [LO 6] Dvorak Music produces two durable music stands: Stand A Stand B Selling price $90 $80 Less variable costs 30 44 Contribution margin $60 $36 Stand A requires 6 labor hours and stand B requires 3 labor hours.The company has only 350 available labor hours per week. Further, the company can sell all it can produce of either product. Required a. Which stand(s) should the company produce? b. What would be the incremental benefit of obtaining 15 additional labor hours? EXERCISE 5-11. [LO 1] During the year,Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required What is the value of ending inventory using full costing? EXERCISE 5-12. [LO 1, 2] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required What is the value of ending inventory using variable costing? EXERCISE 5-13. [LO 1, 2, 3] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required Calculate the difference in full costing net income and variable costing net income without preparing either income statement. EXERCISE 5-14. [LO 1] During the year,Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required What is cost of goods sold using full costing? EXERCISE 5-15. [LO 1, 2] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required What is variable cost of goods sold? EXERCISE 5-16. [LO 1] During the year,Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required What is net income using full costing? EXERCISE 5-17. [LO 1, 2] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required What is net income using variable costing? EXERCISE 5-18. [LO 1, 2, 3] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. Required How much fixed manufacturing overhead is in ending inventory under full costing? Compare this amount to the difference in the net incomes calculated in Exercise 5-13. PROBLEM 5-17. Variable and Full Costing Income:Comprehensive Problem [LO 1, 2, 3] The following information relates to Jorgensen Manufacturing for calendar year 2011, the company's first year of operation: Units produced 8,000 Units sold 7,000 Selling price per unit $ 4,500 Direct material per unit $ 2,000 Direct labor per unit $ 1,200 Variable manufacturing overhead per unit $ 900 Variable selling cost per unit $ 225 Annual fixed manufacturing overhead $800,000 Annual fixed selling and administrative expense $400,000 Required a. Prepare an income statement using full costing. b. Prepare an income statement using variable costing. c. Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing and reconcile it to the difference between income computed under variable and full costing. d. Suppose that the company sold 8,000 units during the year.What would the variable costing net income have been? What would the full costing net income have been