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 cout behavior. After reviewing the data, complete requirements (1) and (2) that follow Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 14.000 shelves $154,000 $18,100 $125,000 28,000 shelves 308,000 34,200 125.000 $6,000 shelves 616,000 66,400 125,000 70,000 shelves 770,000 82,500 125,000 1. Determine whither the costs in the table are variable, fred, 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, entero. 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 Variable Portion Cost of Cost of Cost (per unit) Lumber Utilities Check My Work 6 more Check My Work uses remaining Email Instructor Save and Dut Submit Assignment for Grading Depreciation 2. For each cost, determine the fixed portion of the cost, and the per unit variable cost. If there is no amount of an amount is zero, entero Recall that, for Number of Units Produced, Total Costs - (Variable Cost Per Unt X N) + Foxed 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. Bibliosis analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the da, answer questions (1) through (3) that follow Units Produced Total Cost January 4,360 units $65,600 February 275 6,250 March 1,000 15,000 April 4.775 73,750 May 1.750 32,500 June 3,015 48,000 1. From the data previously provided, help Biblio Files Company estimate the fosed and variable portions of total costs using the high-low method. Recall that Total Costs - (Variable Cost Per Unit Number of Units Produced) Pxed Cost Complete the following table Total Fixed Cost Variable Cost per Unit Check My Work 6 more Check My Works remaining Emel sector Save and Exit Submit Assignment for Grading D HO Mastery (Masteryl ALDO 1. From the data previously provided, help Bib Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Toral 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 Unite from the high-low method, compute the total cost for the following values of N (Number of Units Produced Number of Total Cost 3,500 Units Produced 4,360 4,775 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 fut capacity b. The high-low method only gives accurate data when fixed costs are zero c. The Nigh-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 over-to-Cover Company and BiblioPiles Company on their respective Income Statements Complete the following table from the data provided on the income statements. Each company old 78,800 units during the year Cover-to-Cover Biblio Files Check My Workmore Check My Workesang 5:1 Items Email Instructor Save and Submit Ansprent for Grading Score: 0.0% apter 20 Mastery (Mastery) 20.01 ALGO Contribution Margin Review the contribution margin income statements for Over-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 78.800 units during the year Cover-to-Cover Biblio Files Company Company Contribution marginal (percent) % Un contribution margin Break-even sales units) Break-even sales (dos) Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales 394,000 Variable costs: Manufacturing expert $236,400 Selling expense 19,700 Administrative expense 59,100 (315,200) Contribution margin 570,000 Fixed costs Manufacturing expense 55.000 Check My Work 6 ore Cracky Wong Progress 11 moms signment Score: 0.0% Sunt Assignment for Grading 5 3 6 7 8 Chapter 20 Mastery (Mastery MP 20.01 ALGO Contribution margin $70,000 Manufacturing expete 55.000 Selling expenser 4,000 Administrative 10.700 (19.00) Operating income $59.100 Income Statement Bible Files Bible Files Company Contribution Margin Income Statement For the Year Ended December 31, 2018 1394.000 Variable $157,600 Selling expense 15,80 Administrative expense (236,400) Contribution margin $157,600 ved cuts Manufacturing $80, 500 3.000 Selling expense Admiten 10.000 (95.500 Operating income $59.100 Check My Wory Woman Progress time Assignment Score: 0.0 Emal Submit Assignment for Grading 5 4 8 6 w E P R T Y Sales Mix 1. ALGO Biblo es 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 Sales Price Variable Cost Bookshell per Unit per Unit Rasie $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 overal enterprise product called "Combined," the unit contribution margin for the combined product would be $2.3 Fixed costs for the upcoming year are estimated at $337,260. Recall that the totals of all the sales mi percents must be 100%, Determine the amounts to complete the following table Type of Percent of Break Even Sales Break-Even Sales Bookshelf Sales MIN in Units in Dollars Basic Deluxe Target Profit Refer again 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 net income. Answer questions (1) - C) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales 1. 1 Cover to Cover Company wants to increase its profit by $40,000 in the coming you, what must their amount of sales be? 2. fblin Files Company wants to increase its profit by 140,000 in the coming year, what must their wount of sales be? Check My Workmore Check My Works remaining 05:11 am Emal instructor Save and Suomessment for Grading et Score: 0.0% Z 3 5 4 6 7 8 y and Biblio Files Company on their respective Income Statement. Note that both companie 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 sales. 1. If Cover-to-Cover Company wants to increase its profit by $40,000 in the coming year, what must their amount of sales be?