please help!
Cover-to-Cover Campony is a manufacturer of shelving for books. The company has compied the following cost daea, and wants your help in determining the coit behinviei, After reviewing the dafa, complete reguirements (1) and (2) that follow. 1. Detentuine whisther the costs in the table are variable, foxed, moxed, or none of these, Producced, Total Costa - (Yariable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Pound variable portion of cost (per unit) aiswers to two decimal places. decimal places, Highs-1.ow data for the farst six months of the year, Miter reviewing the data, ancwer questions (1) throegh (3) that follow. data for the first six months of the yeat. After reviewing the data; answer questions (1) through (3) that follow. (Variable Cost Per Unit Number of Units Produced) + Fixed Cost, Complete the following table. 3. Why does the total cost computed for 4,360 units not match the data for January? a. The high-low method is accurate only for months in which production is at full capacity. b. The high-low method only gives accurate data when fixed costs are zero. c. The high-low method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest. d. The high-low method gives accurate data only for levels of production outside the rehnvint range. Fendiad FGhook Mr wos Contribution Margin Review the contribution margin income statements for Cover-to Cover Company and Biblio Files Company on their respective Incone Statements. Complete the following tabl Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements, Complete the following trible frocn the data provided on the income statements. Each company soid 75,800 units during the year. festoach - check Mr himet Income Statement-Cover-to-Cover Income Biblio files Company is making plans for its next fiscal year, and deciles to sell two new types of bookshelves, Basic and Deluxe. The company has compded the following nstimater for the new product offerings. Biblio Tiles Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimate for the new product offerings. The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Delixe products as comportents of one overall enterpnise product called "Combined, "the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estamated at $339,570. Recali that the totals of all the sales mix percents must be 100\%. Determine the amounts to complete the following table. Festand Target Profit Fefer again to thie income statements for Cover-to-Cover Company and Bibla Files Company on their respective Income statement. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the arnount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $30,000 in the coming yeac, what must their amount of sales ben? 2. If Biblio Files Company wants to increase its profit by $30,000 in the coming year, what must their amount of sales bet? 3. What would explain the difference between your answers for (1) and (2)? a. Diblia files Company has a higher contritution maroin ratio, and so more of each sales dollar is availatile to cover fixed conts and provide operating income. b. Cover-to-Cover Company's contribution margin ratio is loweq, meaning that it's more efficient in its operations. c. The companies have goals that are not in the relevant range. d. The answers are not different; each company has the saene required sales amouns for the corrung year to achieve the desired target profit
