PROBLEM 1 Dollywood Corporation accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 10,000 $15,000 March 9,000 $12,500 February 8,000 $14,500 April 7,500 $12,000 Instructions Compute the variable and fixed cost elements using the high-low method. Page 2 ACCT 1162 Problem 2 Sandel Company makes 2 products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 4,000 2,500 Sales $60,000 $25,000 Variable costs 36,000 7,000 Fixed costs _ 9.000 9.000 Net income $15,000 $ 9.000 Profit per unit $3.75 $3.60 Instructions Sandel has unlimited demand for both products. Therefore, which product should Sandel tell his sales people to emphasize? Page 3 ACCT 1162 Problem 3 Determine the missing amounts. Unit Selling Price s Contributo Margin C ibution Marin Rate S300 S600 SIS Page 4 ACCT 1162 Problem 4 Kipling Company has sales of $1,500,000 for the first quarter of 2013. In making the sales, the company incurred the following costs and expenses. Variable Fixed Product costs $500,000 5550,000 Selling expenses 100.000 75.000 Administrative expenses 80,000 67,000 Instructions Calculate net income under CVP for 2013. Page 5 ACCT 1162 Problem 5 Cannon Co. has a unit selling price of $500, variable cost per unit S300, and fixed costs of $210,000. Instructions Compute the break-even point in units and in sales dollars