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 Alter reviewing the data complete requirements (1) and (2) that follow Total Total Total Machine Units Lumber utilities Depreciation Produced Cost Cost Cast 17,000 shelves $144,000 $15.000 $135.000 24.000 shelves 25.000 20.000 135,000 40,000 shelves 576,000 57,200 135.000 60.000 shelves 720,000 71.000 135,000 1. Determine whether the costs in the table are variable, red, mixed or none of these Variable Cost Utilities Mixed cost Deprecation Fixed cost 2. For each cos, determine the fixed portion of the cost and the pentable cont. If there is no aniont or an amount is zero, entero Recall that, for N - Number of Units Produced. Tota Costa Variable Cost Per Unit X N) + Find 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) LOGO Deprecation bed Cost 2. For each cost, determine the fed portion of the cost, and the per unit variable cofereis no mount or an amount is ere, bero. Recall that, for Number of Units Produced, Total Costa (Variable Cost Per Unit) Feed Co. Complete the following table with your answer. Hound variable portion of cost (per unit) answers to two decimal places Fixed Portion Variable Portion Cout of Carst of cost (per unit) Lumber 12 Dopron High-Low Bible Company is the chief comer of Gover to cover Company the bookshelf business wo its manufacturing costs, and has come the following data for the first si math of them. After reviewing the data wito throw that follow Units Produced Total Cost any 4,160 $65.600 February 300 March 2.000 15.000 April 6,000 103,750 May 1,750 32.500 April 6,800 103,750 May 1,750 32,500 June 3.015 40,000 1. From the data previously provided help Biblio Files company estimate the fired 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) + Food Cost. Complete the following table Total Fed Cost Variable Cost per Unit 2. With your Total Fixed Cast and Variable Cost per unit from the high-low method, compute the total cost for the following values of N [Number of units Produced) Nuniber of Units Produced Total Cost 3,500 4360 6.800 1. Why does the total cost computed for 460 units not match the data for anuary The Nigh-low method only for months in which productions full capacity b. The high low method only les accurate it when fed core c. The high-low method glves formula for the estimated to cost and not match devils of production other than the Nahest and low d. The Moow method gives acowate data only for levels of production outside the Ch.20 Lab Activity Printem The Nigh-low method accurate only for months in which production is a full capacity b. The high low method only gives acowate data when fred costs are per The high low method oes a form for the estimated to cost and may not match the front other than the host and lowest ne Nigh low methods are data only for level of production outside the relevante Contribution Margin w the contribution income statement for over to cover company and Bay on the respective come Statements Complete the following table from the data provided on the income Ecomold 10.000 during the Cover to Cover Biblios Company Company Contributi ratio (percent) i contribution margin Ek even sale units) Brosse sales dollar Income Statement - Cover-to-Cover Cover to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2018 404,000 23,200) 80,000 Variable costs Manufacturing expert 242.400 Swing 30,200 Administrative pense 50,600 Contribution margin Fleed cost Manufacturing expense 35.000 Selling expens 4,000 Administrative expense 11.200 Operating income Income Statement - Files Biblio Files Company Antributina Marin in a (20.700) $60,000 Ch. 20 Lab Activity Printitum Income Statement Bible Files Bible Files Company Contribution Hargin Income Statement for the Year Ended December 31, 2018 Sales 5404,000 Variablets Manufacturing expertise 5161,600 Selling expense 10.160 Administrative expense 66640 (242.400) Contribution margin $161.000 Fixed costs Manufacturing expense 583,000 Selling expense 3.000 Administrative expense 10.000 10.000) Operating in $60,000 Sales HN Babilo Files Company is making plans for its most talent and decides to suit two new types of bookshelvet Basic and Dee. The company has compiled the following estimates for the product offering Type of Sales Price Variable cost Bookshell Der Unit Der Unit product offerings $5.00 Type of Sales Price Variable Cost Bookshell per mit pert Basic $1.75 Dhe 9.00 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 Odluse productos components of one overall enterprise product called "Combined," the unit contribution maroin for the combined product would be 12:31. Fand costs for the upcoming year are estimated at $320,020. Recall that the total of all the percent must be 100%. Determine the amounts to complete the following table Type of Percent of treak Even Sales Break Event Sales Bookshell Sales MEN in its in Dollars Deluxe Target Profit Refer to the income statements for Cover-to-Cover Company and to les company on the respective Income Statement. Note that both companies have the same sales and net income Answer question that following that all data for the comic wear is the same as the current wear opt for the amount of salt 1. Cover to Cover Company wants to increase its profit by $40.000 in the coming year what must their amount of sale! 2. febles Company wants to increase its profit by 540.000 in the coming year what most their amount of sales bei Target Profit Referson to the income statements for cover to cover Company and all Files company on their respective Income Statement. Note that both companies have the same sales and nat incom Answer questions (1) that follow, asuming that all data for the coming year is the same as the current year, except for the amount of sales 1. Il Cover to Cover Company wants to increase its profit by $40,000 in the coming year what must their amount of sales be? 3. U bilo les company wants to increase its profit by 540.000 in the coming year what must their amount of sales be? 3. What would explain the difference between your answers for (1) and (2) 3. BiblioFiles Company has a higher contribution margin ratio, and so more of each sales dois available to cover the 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 ranga d. The answers are not different each company has the same required sales amount for the coming year to achieve the desired target probit