311 By how much would the total contribution margin decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? By how much would operating income decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? 312 3-9 3-10 3-12 Does the concept of the relevant range apply to fixed costs? Explain. What is the engineering approach to cost analysis? In what situations might this approach be used? What is the purpose of preparing a scattergram? Why is it potentially problematic that the high-low method only uses two data points to determine the cost function? Give the general formula for a mixed cost. Which term represents the variable cost? The fixed cost? For a manufacturing company, what is the difference between how the gross margin and contribution margin are calculated? 3-13 3-14 311 By how much would the total contribution margin decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? By how much would operating income decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? 312 3-9 3-10 3-12 Does the concept of the relevant range apply to fixed costs? Explain. What is the engineering approach to cost analysis? In what situations might this approach be used? What is the purpose of preparing a scattergram? Why is it potentially problematic that the high-low method only uses two data points to determine the cost function? Give the general formula for a mixed cost. Which term represents the variable cost? The fixed cost? For a manufacturing company, what is the difference between how the gross margin and contribution margin are calculated? 3-13 3-14