Question 1:

Required:

A. Using the high - low method Compute the variable and fixed proportions and the cost formula.

B. What would be the total cost if the expected sales are 600 units?

C. Compute break-even point if the selling price is $13.

D. Compute the margin of safety if the expected sales are 300 units.

Question 2:

ABC Company has been producing and selling 10,000 Bottles a year. The company has the capacity to produce 15,000 bottles with its present facilities. Given the following information:

If a special order is accepted for 5000 meters at a price of $250 per unit. What is your decision accept or reject the order?