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 $130,000 $15,950 $120,000 26,000 shelves 260,000 30,900 120,000 52,000 shelves 520,000 60,800 120,000 65,000 shelves 650,000 75,750 120,000 Review the high-low method, and use the smallest and largest levels of production in your computation. 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 78,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) % % Unit contribution margin Break-even sales (units) Break-even sales (dollars) Units Produced Total Cost January 4,360 units $65,600 February 275 6,250 March 1,000 15,000 April 6,775 103,750 May 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 co using the high-low method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost Complete the following table. Variable Cost per Unit 2,125 $1 15 2. With your Total Fixed Cost and Variable Cost per unit from the high-low method, compute the total cost for the followi values of N (Number of Units Produced), Number of Units Produced Total Fixed Cost Total Cost 3,500 $ 54,625 4,360 67,525 6,775 103,750 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 $130,000 $15,950 $120,000 26,000 shelves 260,000 30,900 120,000 52,000 shelves 520,000 60,800 120,000 65,000 shelves 650,000 75,750 120,000 Review the high-low method, and use the smallest and largest levels of production in your computation. 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 78,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) % % Unit contribution margin Break-even sales (units) Break-even sales (dollars) Units Produced Total Cost January 4,360 units $65,600 February 275 6,250 March 1,000 15,000 April 6,775 103,750 May 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 co using the high-low method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost Complete the following table. Variable Cost per Unit 2,125 $1 15 2. With your Total Fixed Cost and Variable Cost per unit from the high-low method, compute the total cost for the followi values of N (Number of Units Produced), Number of Units Produced Total Fixed Cost Total Cost 3,500 $ 54,625 4,360 67,525 6,775 103,750