i1. Resentiof a- -at ruent. Mastery Problem: Cost-volume-Profit Analysis Cost Behavior Covet-to-Cover Comphy is a manufacturec of stelving for boaky. The company hat compiled the following cose data, and wants your help in determining the cost behavior. After witiening the data, cornplete requirements (1) and (2) that follow. 1. Dotertinie whether the costs in the table are valable, fixedi, mixed, or none of these. 2. For each cost detemune the fixed portion of the cost, and the pec-unit variatie cont. If there it no aniount or an amount is 2 ero, enter " 0. Recall that, for N - Number of uniti Produced, Total Cosis = (Variable Cost Per Unit N) . Fixed Cost. Complete the following table with your anawers. Round variable portion of cost (per unit) answers to two decimal places. (Yariabie Coat Por Unit * Nimter of Units froduced) + nixed Cost. Conviete the following tatle. 7. With your Total fixed Cost and variable cost per Unit from the high-low method, compute the tolal cost for the following values of N (Number of Units froduced). 3. Why does the total cost computed for 4,360 units not match the dara for January? a. The high-low method ha accurate only for months in which production is at full capace. th. The high fow method only gives accurate data when fued costs are zero. c. The high-low method gives a formula for the eitimated total cost and may not match levels of production other than the highest and lowedt. d. The kighilow method gives accurate data onlr for levels of production cutside the relevart range- Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and bliblio Files company on their respective Inceme Statements, Complete the following table from the data uroulded on the income statements. Each company sold 33.800 units turing the vear. for the new product offerings. The company is interested in determining hon many of each type of bookshelt would have to be sold in order to break even. If we think of the Rasic and Dehus orsducts as cottiponerits of ofte overall enterprise product caled "Combined, "the unit contribution margin for the combined oroduct would be 12.71. Fixed coits for the upcoming war are? estimated at 5334,950 . Recall that the totals of all the sales mixpercents must be 1004 . Oeternine the amounts to complete the following table. Taroet Protit and net income. Answer que-tions (1) - (3) that fallow, atspming that all data for the coming year is the same as the curtent yeac, erceot for the amount of sales. 1. 12 Cover-to-cover Compani wants to increave its nrofit by 140.000 in the coming yeac, what must their ansount of yasies be? 2. If alble reles company wants to increase its proft by $40,000 in the coming rest what must their amount of ales be? 7. What wosld esplain the difference between your antaery for (1) and (2)t a. Nitllo Files Company has a higher contribution margin tatio, and so more of each sales dollar is avalatile to cover ficed colts and provide bcereting income. b. Cover to-Cover Company's contribusion margin ratio is lower, meaning that it's more effident in ite ocerations. c. The comparies have goais that are pot in the relevant range. d. Toe ancishis are hot different; each company has the same required sales amount for the conting vear to achieve the isesirnd tagert proft. i1. Resentiof a- -at ruent. Mastery Problem: Cost-volume-Profit Analysis Cost Behavior Covet-to-Cover Comphy is a manufacturec of stelving for boaky. The company hat compiled the following cose data, and wants your help in determining the cost behavior. After witiening the data, cornplete requirements (1) and (2) that follow. 1. Dotertinie whether the costs in the table are valable, fixedi, mixed, or none of these. 2. For each cost detemune the fixed portion of the cost, and the pec-unit variatie cont. If there it no aniount or an amount is 2 ero, enter " 0. Recall that, for N - Number of uniti Produced, Total Cosis = (Variable Cost Per Unit N) . Fixed Cost. Complete the following table with your anawers. Round variable portion of cost (per unit) answers to two decimal places. (Yariabie Coat Por Unit * Nimter of Units froduced) + nixed Cost. Conviete the following tatle. 7. With your Total fixed Cost and variable cost per Unit from the high-low method, compute the tolal cost for the following values of N (Number of Units froduced). 3. Why does the total cost computed for 4,360 units not match the dara for January? a. The high-low method ha accurate only for months in which production is at full capace. th. The high fow method only gives accurate data when fued costs are zero. c. The high-low method gives a formula for the eitimated total cost and may not match levels of production other than the highest and lowedt. d. The kighilow method gives accurate data onlr for levels of production cutside the relevart range- Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and bliblio Files company on their respective Inceme Statements, Complete the following table from the data uroulded on the income statements. Each company sold 33.800 units turing the vear. for the new product offerings. The company is interested in determining hon many of each type of bookshelt would have to be sold in order to break even. If we think of the Rasic and Dehus orsducts as cottiponerits of ofte overall enterprise product caled "Combined, "the unit contribution margin for the combined oroduct would be 12.71. Fixed coits for the upcoming war are? estimated at 5334,950 . Recall that the totals of all the sales mixpercents must be 1004 . Oeternine the amounts to complete the following table. Taroet Protit and net income. Answer que-tions (1) - (3) that fallow, atspming that all data for the coming year is the same as the curtent yeac, erceot for the amount of sales. 1. 12 Cover-to-cover Compani wants to increave its nrofit by 140.000 in the coming yeac, what must their ansount of yasies be? 2. If alble reles company wants to increase its proft by $40,000 in the coming rest what must their amount of ales be? 7. What wosld esplain the difference between your antaery for (1) and (2)t a. Nitllo Files Company has a higher contribution margin tatio, and so more of each sales dollar is avalatile to cover ficed colts and provide bcereting income. b. Cover to-Cover Company's contribusion margin ratio is lower, meaning that it's more effident in ite ocerations. c. The comparies have goais that are pot in the relevant range. d. Toe ancishis are hot different; each company has the same required sales amount for the conting vear to achieve the isesirnd tagert proft