ALGO ALGO High-low method Evander Inc. 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 levels of production are as follows Units Produced 1,935 4,410 6,235 Total Costs $216,720 243,690 337,120 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below Open spreadsheet a. Determine the variable cist per unit and the total find cost. Variable costs Total fixed cost b. Based on part (a), estimate the total cost for 2,940 units of production Total cost for 2,940 units s Check My Work Next EXCEL ALGO EXCEL ALGO Contribution margin ratio This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet a. Coastal Company budgets sales of $1,030,000, fixed costs of $53,300, and variable costs of $236,900. What is the contribution margin ratio for Coastal Company? b. If the contribution margin ratio for Bushner Company is 34%, sales were $769,000, and fixed costs were $203,940, what was the operating income? 20-7, EX 20-9, EX 20-11, ellook Show Me How CengageNOW2 | Online sachs CEL ALGO CEL ALGO Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fixed costs of $34,200,000, a unit variable cost of $930, and a unit selling price of $1,500. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize operating income of $5,700,000. units Cost-volume-profit chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units, or dollars) is in the operating profit area, operating loss area, or at the break-even point. 4,800 units 12,000 units $1,500,000 20,000 units $2,500,000 b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a). c. The graphic format permits the user to visually determine the U and the for any given level of L Show Me How Margin of safety a. If Kirwan Company, with a break-even point at $2,080,000 of sales, has actual sales of $3,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 20-11, eBook 1. 1 2. % b. If the margin of safety for Kirwan Company was 25%, fixed costs were $1,500,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) CO Operating leverage Asha Inc. and Samir Inc. have the following operating data: Samir Inc. Asha Inc. Sales $2,500,000 $4,000,000 Variable costs (1,500,000) (2,500,000) Contribution margin $1,000,000 $1,500,000 Fixed costs (800,000) (900,000) Operating income $200,000 $600,000 a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. Samir Inc. b. How much would operating income increase for each company if the sales of each increased by 30% Asha Inc. Samir Inc. Dollars Percentage % % c. The difference in the leverage means that its fixed costs are al of operating income is due to the difference in the operating leverages. Asha Inc.'s Q percentage of e of contribution margin than are Samir Inc.'s. operating