Managerial Accounting

war onlator is allowed. Q1. State whether the following statements are True/False- Ilittleadhd a) Total fixed costs change with changes in volume of activity. b) Regression analysis is one of the most accurate methods for estimating costs, because its estimates are based on the data set as a whole. c) The high-low method is one of the most accurate methods for estimating costs, because its estimates are based on the data set as a whole. d) The contribution margin income statement is used for internal reporting purposes and presents the fixed and variable components of cost information. e) Examples of variable costs include factory building insurance and wages for hourly workers. Q2. Bakery Inc. is a small bakery looking to expand its product offerings. The company is evaluating two alternatives: pies and pastries. Annual projections for sales of pies are as follows: Sales $244,000; variable costs $60,000; fixed costs $26,000. Annual projections for sales of pastries are as follows: Sales $160,000; variable costs $50,000; fixed costs- $15,000 Required: Perform differential analysis to determine which alternative is more profitable, and by how much. Assume that adding pies is alternative ] and adding pastries is alternative 2. (jewel