Problem 1,2,3

The controller of Getty Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs: Determine the fixed and variable cost components using the high-low method. Prepare a graph showing the behavior of maintenance costs, and identifying the fixed and variable cost elements. Use 2,000 unit increments and $1,000 cost increments. In the month of June, Andrea's Beauty Salon gave 2,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $18,000 and variable costs were 40% of sales. a. Determine the contribution margin in dollars, per unit, and as a ratio. b. Using the contribution margin technique, compute the break-even point in dollars and in units. c. Compute the margin of safety in dollars and as a ratio. Ewing Company estimates that variable costs will be 50% of sales, and fixed costs will total $800,000. The selling price of the product is $4. a. Prepare a CVP graph, assuming maximum sales of $3,200,000. b. Compute the break-even point in (1) units and (2) dollars. c. Compute the margin of safety in (1) dollars and (2) as a ratio, assuming actual sales are $2 million