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Managerial Accounting Star Company, a wholesaler of large, custom-build air conditioning units for commercial buildings: Month Units Shipped Shipping Expenses June 300 $ 18,000 July
Managerial Accounting
Star Company, a wholesaler of large, custom-build air conditioning units for commercial buildings: Month Units Shipped Shipping Expenses June 300 $ 18,000 July 600 $ 23,000 August 400 $ 17,000 September 500 $ 20,000 October 700 $ 23,000 November 800 $ 27,000 December 200 $ 12,000 Question la to 1d to be answered with using the high-low method: a. Calculate Element of variable cost per unit shipped! (5%) b. Calculate Element of fixed shipping expenses per month and write a cost formula for shipping expense! (5%) c. There are many disadvantages of using the high-low method, explain min. 2 disadvantages! (5) d. With using the cost formula on answer of letter c above, and during January in next year, Star Company succeed to ship at 500 units, calculate total shipping expenses, show your calculation! (5%) e. The following information to complete the answer of letter d above. Number of units sold. 500 Selling price per unit $ 1,000 Variable selling expense per unit 200, include variable shipping expense per unit Variable administrative expense per unit . S 75 Fixed selling expenses $ 50,000, exclude fixed shipping expenses Fixed Administrative expenses .. $ 30,500 Beginning merchandise inventory. $ 55,000 Ending merchandise inventory .. $ 60,000 Merchandise purchases. $ 200,000 Instruction: Prepare income statement under contribution format for the month ended January 31, 2021! (10%%) f. Calculate Break Even Point (BEP) in unit and dollar, show your calculation (rounded nearest) and show also a proof that your result is correct with doing income statement briefly! (5%) g. If the company want to earn expected net operating income $ 10,000 only, calculate amount of unit that have to be sold to achieve that profit, show your calculation and a proof of your answer! (5%)
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