[The following information applies to the questions displayed below.]

Alden Co.s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Month	Units Sold					Total Cost				Month		Units Sold					Total Cost
1			319,500			$	157,000			7				360,500				$	281,644
2			164,500				100,750			8				269,500					151,250
3			264,500				205,100			9				76,100					65,500
4			204,500				99,500			10				149,500					130,125
5			289,500				201,000			11				93,500					93,500
6			189,500				111,500			12				99,500					82,150

Problem 21-2A Part 2

2. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)

[The following information applies to the questions displayed below.]

Alden Co.s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Month	Units Sold					Total Cost				Month		Units Sold					Total Cost
1			319,500			$	157,000			7				360,500				$	281,644
2			164,500				100,750			8				269,500					151,250
3			264,500				205,100			9				76,100					65,500
4			204,500				99,500			10				149,500					130,125
5			289,500				201,000			11				93,500					93,500
6			189,500				111,500			12				99,500					82,150

Problem 21-2A Part 3

3. Predict future total costs when sales volume is (a) 379,000 units and (b) 419,000 units.

The following information applies to the questions displayed below.] Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next years plans call for a $290 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $313,200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $203 per 100 yards of XT rope.

Problem 21-3A Part 1

1. Estimate Product XTs break-even point in terms of sales units and sales dollars. (1 unit = 100 yards) (Do not round intermediate calculations.)

[The following information applies to the questions displayed below.] Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next years plans call for a $290 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $313,200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $203 per 100 yards of XT rope.

Problem 21-3A Part 2

3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.