The recent high and low levels of hours operated and monthly repair cost for heavy equipment for Universal Mfg. are shown below:

Hours Operated Repair Cost

Highest observed level 24,000 $7,450

Lowest observed level 21,500 6,700

Q1 Refer to the above data. Using the high-low method, compute the fixed element of Universals monthly repair cost: a $150. c $6,300. b $250. d $6,450.

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Q2 Refer to the above data. The total estimated repair cost for a month in which Universal operates equipment for 19,000 hours is: a $5,950. c $6,450. b $6,300. d $5,700.

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Q3 Perkins Corporation manufactures two products; data are shown below

Contribution Margin Ratio Relative Sales Mix

Product A....................................... 40% 40%

Product B....................................... 30% 60%

If Perkins monthly fixed costs average $425,000, what is its break-even point expressed in sales dollars? a $1,320,000. c $1,250,000. b $1,400,000. d $990,000.

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All Are MCQS Please explain with formula where you will be used the values