Cover to-Cover Company is a manufacturer of Shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 4,000 shelves $44,000 $6,600 $110,000 8,000 shelves 38.000 11.200 130,000 10,000 shelves 176,000 20,400 130,000 20,000 shelves 220,000 25,000 130,000 1. Determine whether the costs in the table are variable, fred, med, of one of these Luniber Variable cost Mixed Cust Dodation leed Cost 2. For each cost in the bed portion of the cast and the punt variables there is no amount or an amount to zero, entro Recall that for N-Number of Units Produced Total Contrato com Per United Cost Complete the following table with you howers. Round variable portion of cost per unit) answers to two decimal places Fixed Portion Variable Portion Cost of Cost of Cost (per unit) Lumber o 11 2.000 1.15 Deprecator 130,000 0 Biblia files company is the chief competitor of Cover to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow. Units Produced Total Cost January 4.360 units $65,600 February 300 6,250 March 1,000 15,000 April 6,800 136,250 May 1.750 32,500 June 3,015 48,000 1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs - (Variabile Cost Per Unit * Number of Units Produced) + Fixed Cost. Complete the following table Total Fixed Cost Variable Cost per Unit 15 x 15 X 2. with your Total Fixed cost and variable Coster Unit from the high-low method come the total cost for the following values of N (Number of Units Produced Number of Units Produced Total Cost 3,500 4.360 6,500 Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales $409,000 Variable costs: Manufacturing expense $245,400 Selling expense 20,450 61,350 (327,200) Administrative expense Contribution margin Fixed costs: $81,800 $5,000 Manufacturing expense Selling expense Administrative expense 4,000 11,450 (20,450) Operating income $61,350 Income Statement - Biblio Files Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2018 Sales $409,000 Variable costs: $163,600 16,360 65,440 (245,400) $163,600 Manufacturing expense Selling expense Administrative expense Contribution margin Fixed costs: Manufacturing expense Selling expense Administrative expense $84.250 8,000 10,000 (102.250) $61,350 Operating income Sales Mix product offerings blo Files Company is making plans for its next fiscal year and decides to sell two new types of bookshelves, Basic and Delre. The company has compiled the following estimates for the new Type of Sales Price Variable Cost Bookshell per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshe would have to be cold in order to be even think of the Basic and Delice products as components of one overall enterprise product called "Combined the unit contribution margin for the combined product would be 52.3. Foed costs for the upcoming year are estimated st 328,020. all that the totals of all the percents must be 100%. Determine the amounts to complete the following the Type of Percent of Break-Even Sales Break-Even Sales overal enterprise product called combined the contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated $728.00. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table. Type of Percent of Break Even Sales Break Even Sales Bookshell Sales Mix in Units in Dollars Basic Delunce Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblio File Company on their respective Income Statement. Note that both companies have the same sales and be income Answer questions (1)-(3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $30,000 in the coming year what must their amount of sales be? 2. IrFiles Company wants to increase its profit by $30,000 in the coming year what must the amount of sales bez 3. What would explain the difference between your answers for (1) and (2) 1. File Company has a higher contribution margin ration, and so more of each sales dollar is available to cover the costs and provide operating income b. Cover.co.cover company contribution margin ratio is one meaning that is more effidentinis operations The companies have als that are not in the relevant range