Relevant Range and Fixed and Variable costs Vagel Inc. manufactures memory chips for electronic toys within a relevant range of 100,800 to 165,600 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced 100,800 128.800 165,600 Total costs: Total variable costs $41,328 (d) Total fixed costs 46,368 (e) (k) Total costs 587,696 (1) Cost per unit: Variable cost per unit (a) (m) (9) (h) Fixed cost per unit... (b) (n) Total cost per unit (0) (0) Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar. Cost Report Components produced Total costs: 100,800 128,800 165,600 $ $ Total variable costs $41,328 (d) 6) Total fixed costs 46,368 (c) $ Total costs $87,696 (6) Cost per Unit Variable cost per unit (a) (9) (m) Fixed cost per unit (n) $ $ Total cost per unit (c) (0) High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January 301,000 February $1,015,900 1,132,700 800,500 1,086,000 March April 336,000 218,000 326,000 262,000 354,000 May 910,800 June 1,167,700 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost $ Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $15,700 $6,070 4,000 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 2,860 2,300 $15,230 Income from operations $470 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million b. What is Wicker Company's contribution margin ratio? Round to one decimal place. % c. How much would income from operations increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million Break-Even Sales Currently, the unit selling price of a product is $260, the unit variable cost is $210, and the total fixed costs are $680,000. A proposal is being evaluated to increase the unit selling price to $290. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $290, and all costs remain constant. units
