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Per Unit 550.00 10.00 Total $1,000,000 200.000 50,000 2.50 3.50 4.00 Sales (20,000 units) Direct materials (variable) Direct labor (variable) Factory overhead: Variable Fixed Selling

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Per Unit 550.00 10.00 Total $1,000,000 200.000 50,000 2.50 3.50 4.00 Sales (20,000 units) Direct materials (variable) Direct labor (variable) Factory overhead: Variable Fixed Selling and administrative: Variable 70,000 80,000 100,000 30,000 Fixed Required: Compute the following items: a Unit contribution margin. b. Contribution margin ratio. c. Break-even in sales dollars. d. Margin of safety percentage. If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating income? e. Problem 2 (20 points): Grawburg Inc. maintains a call center to take orders, answer questions, and handle complaints, The costs of the call center for a number of recent months are listed below: April May June July August September October November Calls Taken 9,030 9,017 9,035 9,065 9,015 9,061 9,070 9.067 Call Center Cost 112.323 112.278 112.341 112.458 112,290 112,419 112.463 112.439 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the high-low method. Remember to write your final answer in the form of y=a +5X or TC-FC + VC. process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget are available: Monthly Fixed Cost Variable Cost per Bobb Sold $0.90 S1.10 S0.40 Sales Commissions Shipping Advertising Executive Salaries Depreciation on Office Equipment Other $10,000 S40,000 $15,000 S25,000 $0.45 All of these expenses (except depreciation) are paid in cash in the month they are incurred. 13. If the company has budgeted to sell 30.000 Bobbs in August, then the total budgeted selling and administrative expenses per unit sold for August is a. $2.85. b. $5.85. c. $3.00. d. $5.35 14. If the company has budgeted to sell 26,000 Bobbs in November, then the total budgeted variable selling and administrative expenses for November will be a. $62,400. b. $37,700 c. $90,000 d. $74.100. 15. If the company has budgeted to sell 28,000 Bobbs in September, then the total budgeted fixed selling and administrative expenses for September is a. $90,000 b. $75,000. c. $65,000 d. $79,800 16. In order to properly report segment margin as a guide to long-run segment profitability and performance, fixed costs must be separated into two broad categories. One category is common fixed costs. What is the other category

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