The manufacturing costs of Ackerman Industries for the first three months of the year follow:

	Total Costs		Units Produced
January	$60,280		1,440	units
February	56,160		845
March	87,360		2,145

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.

a. Variable cost per unit	$
b. Total fixed cost	$

part 2

Willie Company sells 35,000 units at $29 per unit. Variable costs are $18.56 per unit, and fixed costs are $204,600.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

a. Contribution margin ratio (Enter as a whole number.)		%
b. Unit contribution margin (Round to the nearest cent.)	$	per unit
c. Income from operations	$

Part 3

Break-Even Point

Hilton Enterprises sells a product for $77 per unit. The variable cost is $38 per unit, while fixed costs are $214,461.

Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $85 per unit.

a. Break-even point in sales units	units
b. Break-even point if the selling price were increased to $85 per unit	units

part 4

Target Profit

Trailblazer Company sells a product for $185 per unit. The variable cost is $85 per unit, and fixed costs are $800,000.

Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $208,000.

a. Break-even point in sales units		units
b. Break-even point in sales units if the company desires a target profit of $208,000		units

part 5

Sales Mix and Break-Even Analysis

Heyden Company has fixed costs of $795,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:

Product	Selling Price		Variable Cost per Unit			Contribution Margin per Unit
QQ	$480		$270			$210
ZZ	250		140			110

The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.

a. Product QQ  units

b. Product ZZ  units

part 6

Operating Leverage

Snellville Co. reports the following data:

Sales		$965,800
Variable costs		637,400
Contribution margin		$328,400
Fixed costs		262,700
Income from operations		$65,700

Determine Snellville Company's operating leverage. Round your answer to one decimal place.

part 7

Margin of Safety

The Rachel Company has sales of $680,000, and the break-even point in sales dollars is $537,200.

Determine the company's margin of safety as a percent of current sales.
%

Answer rating: 100% (QA)

Part 1 a Variable cost per unit Total variable costs Total units 60280 56160 87360 1440 845 2145 24 ... View the full answer