Managerial hw

7. Machine hours and electricity costs for Wells Industries for last year were as follows: Machine Electricity Month Hours Costs January 2,000 $ 9,200 February 2,320 10,500 March 1,520 6,750 April 2,480 1 1,500 May 3,040 14,125 June 2,640 1 1,000 July 3,280 12,375 August 2,800 11,375 September 1,600 7,750 October 2,960 13,000 November 3 ,760 15,500 December 3,360 13,875 Required: A Using the high-low method, develop an estimate of variable electricity costs per machine ' hour. B. Using the high-low method, develop an estimate of xed electricity costs per month. C. Using the high-low method, develop a cost function for monthly electricity costs. D. Estimate electricity costs for a month in which 3,000 machine hours are worked. 8. Mo's Company expects to produce and sell 500 units next month. Data on costs follows: Per unit costs: Selling price $8.00 Variable manufacturing costs 2.75 Variable selling costs 0.25 Total costs: Fixed manufacturing costs $1,000 Fixed selling costs 125 Required: A. What is the variable cost per unit? B. What is contribution margin per unit? C. What is the variable cost ratio? D. What is the contribution margin ratio