Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months:

Month	Number of Cavities Filled	Total Cost
January	625	$5,600
February	700	6,000
March	500	4,500
April	425	4,100
May	450	4,500
June	300	3,200
July	375	3,500
August	550	4,900
September	575	5,400

Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.

2. Using these estimates, calculate Mountains total cost for filling 500 cavities.

Riverside Inc. makes one model of wooden canoe. Partial information for it follows:

Number of Canoes Produced and Sold
		510		660		810
Total costs
Variable costs	$	75,990		?		?
Fixed costs		149,400		?		?
Total costs	$	225,390		?		?
Cost per unit
Variable cost per unit		?		?		?
Fixed cost per unit		?		?		?
Total cost per unit		?		?		?

Required:

1. Complete the table.

3. Suppose Riverside sells its canoes for $508 each. Calculate the contribution margin per canoe and the contribution margin ratio.

4. Next year Riverside expects to sell 860 canoes. Complete the contribution margin income statement for the company.

Consider the following information for Presidio Inc.'s most recent year of operations.

Number of units produced		2,200
Number of units sold		1,350
Sales price per unit	$	720.00
Direct materials per unit		65.00
Direct labor per unit		95.00
Variable manufacturing overhead per unit		45.00
Fixed manufacturing overhead per unit ($261,360 2,200 units)		118.80
Total variable selling expenses ($11 per unit sold)		14,850.00
Total fixed general and administrative expenses		83,000.00

Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.