show all work plz
Use the information below to answer the following two questions: Chamomile Inc. is a manufacturing company whose total manufacturing overhead costs fluctuate somewhat from month to month according to the number of machine-hours worked in its production facility. These costs for the last four months in 2019 are given below. Machine-hours Total manufacturing overhead September 6,500 S 62,500 October 9,000 70,500 November 5,000 S 55,000 December 10,000 S 70,000 S The manufacturing overhead costs above consist of rent, maintenance, and utilities. The company has analyzed these costs at the 5,000 machine-hours level of activity as follows: 30,000 14,500 Rent (fixed) Maintenance (mixed) Utilites (mixed) Total factory overhead costs 35,000 The company also found that the fixed maintenance cost in November was $4,500. 5 The company expects that it will work for 7,000 machine-hours in January 2020. Using the high-low method, how much is the estimated utilities cost in January 2020? (Round to the nearest dollars.) A. $12,500 B. $14.250 $14,700 $61,000 E. None of the above C. D 6 Suppose the company uses the least-squares regression method by Microsoft Excel and finds that the relation between total manufacturing overhead costs and machine-hours can be expressed as the following equation: Y = $40,926 +$3.09X where Y is the total manufacturing overhead costs and X is the machine-hours used. Which of the following statements is false? A. The least-squares regression method results in estimated fixed manufacturing overhead costs that are higher than the amount derived using the high-low method. B. The least-squares regression method results in estimated variable manufacturing overhead costs per unit that are higher than the amount derived using the high-low method. The least-squares regression method uses all of the data to separate total manufacturing overhead costs into fixed and variable components. D. Using the least-squares regression method, fixed manufacturing overhead costs are estimated to be $3.09 per machine- hours. E. None of the above C. 7 Bearcat Company is planning to increase the unit selling price and advertising budget for next year. If other conditions remain the same, how will these changes affect a slope of total sales line and a slope of total expenses line with units of activity on the x-axis and $ on the y-axis? Total sales line A. steeper . steeper C. Doesn't change D Doesn't change E. None of the above Total expenses line flatter Doesn't change flatter Doesn't change 8 The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020? A. $150 Decrease $250 Decrease $110 Increase D. S250 Increase $510 Increase B. . E. 9 The graph below shows the CVP Graph of Bernard company. Profits ($) Units (Q) 4,000 units - 30,000 If the profit is $7,500, what is the margin of safety percentage? A. 10.0% B. 13.3% C. 20.0% D 25.0% E. 30.0%
