4.5

H-gh-low method Evander Ine. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost, The data for various ievels of production are as follews: a. Determine the variable cost per unit and the total fixed cost. Varisble cost 5 Total foxed cost 1 b. Based on part (a), estimate the total cost for 2,420 units af production. Total cost for 2,420 units \{ Contribution margin ratio a. Coastal Compamy budgets sales of $1,150,000, foxed conts of $75,000, and yariable costs of $333,500. What is the contributicn margin ratio for Coastal Campary? b. If the contribution margin ratio for Bushner Company is 47%, sales were 5643,000 , and fixed costs were $226,660, what was the operaring income