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Operational information Part 2 The owners of Dynamadics were reviewing the financial information for one of its product lines produced and sold from its Penticton

image text in transcribed Operational information Part 2 The owners of Dynamadics were reviewing the financial information for one of its product lines produced and sold from its Penticton region. The revenues and expenses for the last four months for this product line in the Penticton Region is presented below. Requirement \#2 (19 marks) The owners are concerned about the profit levels for the Penticton region. They would like to understand more about the cost behaviours and have asked you to prepare some analysis based on the information presented in Operational Information Part 2. Specifically, they would like to know the following: 1. Of the costs incurred, which are variable, fixed or a combination of variable and fixed (mixed)? (1.5 marks) 2. What is the cost equation for each of the mixed costs? (tip: use the high-low method) (7.5 marks) 3. Sales demand in the August is expected to be 6,300 units. Prepare a contribution margin income statement (in good form) for the month of August. (10 marks)

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