Question 1:

Total costs were $78,000 when 25,000 units were produced and $98,400 when 38,000 units were produced. Use the high-low method to find the estimated costs for a production level of 32,000 units.

Question 2:

Randy's tireland makes a product that sells for $73 per unti and has $53 per unit in variable costs. Annual fixed costs are $24,000. If Rambels sells 10 units less than breakeven, how much loss would the company recognize on its income statement?

Question 3:

Ritz Furniture has a contribution margin ratio of 0.13. If fixed costs are $172,900, how many dollars of revenue must the company generate in order to reach the break-even point?