Master Problem Castvome Profit Assis Cost Behavior Certo-Cave many is mandator of thing for books. The company has come the flowing Total Total Total Machine Lamberts Depreciation Produced Cost Cost Cost 13.000 1.000 1.0 3.000 25. 12.000 52.00 624,000 85.000.000 75,250 2. For each costret fed portion of the count, and the per-unit variable cont. there is no amount or an amount is now "Recall that,for-Number of Units Produced as (Contex) Complete the following table with your Hound variable portion of cast it) wwers to two decimal places Feed Port Variable Portion Cost of Cost of Cast (per unit) Lumber Depreciation Mes company is the chief competitor of Covento-Cover Company in the bookshelf business, Fleis analysing its maturing costs and has compled the following data for the first months of the year here the data weton (1) through that too. Units Produced Total Cost January February 300 1.000 15,000 April 3800 133.750 May 3,015 48.000 1. From the data previously Brovided, helbes Company imate the readable portion of Its total cosing the high low method. Recall that starte Cost Per Unter Units Preced) Co. Come the following table Total Fleed Cost Variable Coster Unit 2. w your local and cost and variable cont per unit from the high low method, compute the total cost for the followings of Number of Units Produced mbered Total Cont 3.500 8,500 3. Ww does the total cost computed for some match the data for ty? 2. The low method is accurate only for months in which production is alty The Nichow method only gives accurate data when theed costs are c. The tow method formula for the estimated total cost and may not match levels of production other than the highest and lowest d. The how method gives sont fata only for levels of production to the relevant Review the contribution mari income statements for over-to-Cover Company and BiblioFiles Com on the respective Income Statements Complete the following table from the data provided on the in statements. Each company sold 79.000 units during the Cover-to-Cover Bibles Commy Company Contribution margin percent) Break-even sales (dollars) Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin income Statement For the Year Ended December 31, 2018 Sales We costs Mandaturing expense 29.400 09.2001 5:79.900 Mandaduring expense 4.000 Operating income Income Statement Bible Files Fes Company Contribution Margin Income Statement For the Year Ended December 31, 2018 0.000 $15.00 Operating income Type of Sales Pe Vert Du Type Bookshell Tartu the Basic and Deluxe products as components of one overall enter product called "Combined," the unit contribution margin for the combined product would be $2.31. Fix costs for the upcoming year are estimated at $330,330. Recall that the totals of all the sales mix perce must be 100%. Determine the amounts to complete the following table. Type of Bookshelf Percent of Sales Mix Break-Even Sales Break-Even Sales in Units in Dollars Basic % Deluxe % Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 2. If Biblio Files Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 3. What would explain the difference between your answers for (1) and (2)? a. Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is available to cover fixed costs and provide operating income. b. Cover-to-Cover Company's contribution margin ratio is lower, meaning that it's more efficient in its operations. C. The companies have goals that are not in the relevant range. d. The answers are not different; each company has the same required sales amount for the coming year to achieve the desired target profit. Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow Total Total Total Machine Units Lumber utilities Depreciation Produced Cost Cost Cost 13,000 shelves $156,000 $15.950 $135,000 26,000 shelves 312,000 30,000 135,000 52,000 shelves 624,000 60,000 135,000 65,000 shelves 780,000 75,750 135,000 1. Determine whether the costs in the table are variable, foed, mixed, or none of these Lumber Depreciation 2. For each cost determine the fived portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "o". Recall that, for N-Number of Units Produced, Total Costs - (Variable Cost Per XN) Fixed cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Fixed Portion Variable Portion Cost of Cost of Cost (per unit) Lumber Utilities Depreciation High-Low Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshell business. Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer Guestions (1) through (3) that follow Units Produced Total Cost January 4,360 units $65,600 February 300 6,250 March 1.000 15.000 April 8.800 133,750 May 32,500 June 3,015 48,000 1. From the data previously provided, help blo Filles Company estimate the feed and variable portions of its total costs using the high-low method. Recall that Total Costs - (Variable Cost Per Unit Number of Units Produced) Feed Cost. Complete the following table Total Feed Cost Variable Const per Unit 2. with your TotalFeed Cost and variable Cost per unit from the high-low method, compute the total com for the following values of N(Number of Units Produced). Number of Units Produced Total Cost 3.500 4,350 3,500 3. Why does the total cost computed for 4,300 units not match the data for January 3. The high-low method is accurate only for months in which production is a full capacity D. The Nighlow method only gives accurate data when we costs are mere c. The high-low method gives a formula for the estimated total cost and may not match levels of production other than the Highest and lowest d. The high-low method gives accurate data only for levels of production outside the relevantage Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and BiblioFles Company on their respective Income Statements Complete the following table from the data provided on the income statements. Each company sold 79,800 units during the year Coverto-Cover Biblio Files Company Company Contribution margin ratio (percent) Unit contribution margin Break even sale unit) Break even sales (dollars) Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2018 $399,000 Variable costs Manufacturing expense 5239.400 Selling expense 19,950 Adorative pense 59,850 (319.2001 Contribution margin $29.000 Manufacturing expense 55.000 4,000 Administrative expense 10,950 (19,950) Operating income Income Statement-Biblio Files Biblio Files Company Contribution Margin Income Statement For the Year Ended December 21, 2018 $299,000 Variable Manufacturing pense $159,600 Selling expense 15.000 Administrative expense 0239,400 Contribution margin $150.000 Manufacturing expense Selling expen B000 Administrative expense 10.000 099.750) Operating income 5. Sales Mix bles Company is making plans for its next focal year, and decides to sell two new bookshelves, Basic and D. The company has compiled the following estimates for the new product Type of Sales Price Variable cost 15.00 $1.75 be 8.10 The company is interested in determining how many of each type of books have to be order to break even if we think of the base and products componente product Com the contribution marge for the Comprou would be Type Bookshell Percent of reven Sales Brave Sales Sales Mix De Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 2. If Biblio Files Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 3. What would explain the difference between your answers for (1) and (2)? a. Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is available to cover fixed costs and provide operating income. b. Cover-to-Cover Company's contribution margin ratio is lower, meaning that it's more efficient in its operations. C. The companies have goals that are not in the relevant range. d. The answers are not different; each company has the same required sales amount for the coming year to achieve the desired target profit. Previous Next > Mastery Problem: Cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 13,000 shelves $156,000 $15,950 $135,000 26,000 shelves 312,000 30,900 135,000 52,000 shelves 624,000 60,800 135,000 65,000 shelves 780,000 75,750 135,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N - Number of Units Produced, Total Costs = (Variable Cost Per Unit X N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Fixed Portion of Cost Variable Portion of Cost (per Unit) Cost Lumber Utilities Depreciation High-Low Pihlin Filor Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow, Units Produced Total Cost May January 4,360 units $65,600 February 300 6,250 March 1,000 15,000 April 8,800 133,750 1,750 32,500 June 3,015 48,000 1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs - (Variable Cost Per Unit x Number of Units Produced) + Fixed cost. Complete the following table. Total Fixed Cost Variable Cost per Unit 2. With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced). Number of Units Produced Total Cost 3,500 4,360 8,800 3. Why does the total cost computed for 4,360 units not match the data for January? a. The high-low method is accurate only for months in which production is at full capacity. b. The high-low method only gives accurate data when fixed costs are zero. c. The high-low method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest. d. The high-low method gives accurate data only for levels of production outside the relevant range, Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 79,800 units during the year. Cover-to-Cover Biblio Files Company Company Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) % Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2048 $399,000 Sales Variable costs: Manufacturing expense $239,400 Selling expense 19,950 Administrative expense 59,850 (319,200) Contribution margin $79,800 Fixed costs: Manufacturing expense $5,000 Selling expense 4,000 Administrative expense 10,950 (19,950) Operating Income $59,850 Income Statement - Biblio Files Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales $399.000 Variable costs: Manufacturing expense $159,600 Previous Next > A Work saved San Es Su Te Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 Sales $399,000 Variable costs: Manufacturing expense $159,600 Selling expense 15,960 Administrative expense 63,840 (239,400) Contribution margin $159,600 Fixed costs: Manufacturing expense $81,750 Selling expense 8,000 Administrative expense 10,000 (99,750) Operating income $59,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type of Bookshelf Variable cost Sales Price per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called "Combined," the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $330,330. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table. Type of Percent of Break-Even Sales Break-Even Sales Bookshelf Sales Mix in Units in Dollars Basic 196 Deluxe Target Profit Previous Next Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current yea except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 2. If Biblio Files Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 3. What would explain the difference between your pnswers for (1) and (2)? a. Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is available to cover fixed costs and provide operating income. b. Cover-to-Cover Company's contribution margin ratio is lower meaning that it's more efficient in its operations. C. The companies have goals that are not in the relevant range. d. The answers are not different; each company has the same required sales amount for the coming year to achieve the desired target profit