Managerial Accounting

Question 1: l+4+5=10 a) Cost-volume-prot analysis can be used to estimate the rm's operating prots at different levels of what? b) Some nancial data for each of the three firms are as follows: Jake's Lawn Chairs Sarasota Sky Lights Jefferson Wholesale Average selling price per unit $32.00 $875.00 $97.77 Average variable cost per unit $17.38 $400.00 $87.00 Units sold 18,770 2,800 11,000 Fixed costs $120,350 $850,000 $89,500 i.) What is the prot for each company at the indicated sales volume? ii.) What is the break-even point in units for each company? iii) What is the degree of operating leverage for each company at the indicated sales volume? iv.) If sales were to decline, which rm would suffer the largest relative decline in protability? c) One of Baric Company's products goes through a glazing process. The company has observed glazing costs as follows over the last six weeks: Week Units Produced Total Cost (Take) 8 270 5 210 Required a) Ascertain Variable Cost per unit and Total Fixed Cost under High-Low method b) Ascertain Variable Cost per unit and Total Fixed Cost under Least-square method c) Ascertain Variable Cost per unit and Total Fixed Cost under Scatter Graph Method d) Express the xed and variable components of production costs as a cost forrnula in the linear equation form, Y = a + bX e) Among the three methods, which one is the best and why; explains