Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please complete BOTH pages, the second page has a second part to question 3. Thank you. use the high-low Company's utilities, observations for Smithson following

please complete BOTH pages, the second page has a second part to question 3. Thank you. image text in transcribed
image text in transcribed
use the high-low Company's utilities, observations for Smithson following cost and activity method to calculate Smithson's fixed costs per month. Do not round your intermediate calculations Machine Hours Cost January February March S52,200 75,000 57,000 64,000 20,000 29,000 22,000 24,500 2. Given the following cost and activity observations for George Company's utilities, use the high-low method to calculate George's variable utilitics costs per machine hour Cost Machine Hours May June July August 105,000 120,000 100,000 117,000 $16,500 18,000 16,000 17,500 In the current year, the Montgomery Company produced and sold 5,000 units of product Sales Cost of Merchandise Sold S 250,000 120,000 $ 130,000 30,000 S 100,000 Gross Profit Other Operating Expenses Operating Income e division of costs between fixed and variable is as follows Fixed 25% 20% Variable 75% 80% Cost of Merchandise Sold Other Operating Expenses Calculate Total Variable Cost? Contribution Margin per Unit? Break-even sales, in units? Break-even sales, in dollars? Sales, in units to realize an operating income of $200,000 What if Montgomery Co automates the factory next ycar, increasing fixed costs by $15,000 and changing the contribution margin ratio to 65%? What amount of sales must be achieved to earn the same Operating Income of $100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Fraud Risk And Control Workbook

Authors: Peter Goldmann, Hilton Kaufman

1st Edition

0470496533, 978-0470496534

More Books

Students also viewed these Accounting questions

Question

The company has fair promotion/advancement policies.

Answered: 1 week ago