Question: 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.

 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 leve production are as follows: 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
belo Open spreadsheet. a. Determine the varable cost per unit and the

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 leve production are as follows: 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 belo Open spreadsheet. a. Determine the varable cost per unit and the total fixed cost. Variable cost 1 Total faxed cost 1 b. Based on part \{a), estimate the total cost for 3,640 units of preduction. Total cost for 3,640 units s This information has been collected in the Microseht Excel Online fie. Open the spreadsheet, perform the requared analysis, and input your answers in the question below. Optn spreadsheet a. Coastal Company budgets sales of $800,000, faxd costs of $59,400, and variatile costs of $264,000. What is the contribution margin ratio for Coastal Company? b. If the contribution margin ratio for dushner Company is 39%, sales were $446,000, and fixed costs were $128,720, what was the operating income? Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fued 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 yeat, Loudermik inc. anticloates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price, of $125. The maximum sates within the relevant range are $2,500,000 * a. Construct a cost-volume-proht chart on a sheet of paper. Indicate whether each of the following levels of sales (units or doltars) is in the operating profit area, operabing ioss area, or at the break-even point. b. Estimste the break-even sales (dollars) by using the costivolume-profit chart contstructed in part (a). C. The graphic format permits the user to visuatly determine the and the for any given level of a. If kinwan Company, with a breakevena point at $2,080,000 of sales, has actual sales of $3,200,000, what is the margin of safety expressed (i) in dollars and (2) as percentage of sales? 1.4 2. b. If the margin of tafety for Kiman Company was 25\%, fixed costs were $1,500,000, and variable costs were 60\%4 of sales; what was the amouns of actual sales. (dollars)? (Hint: Determine the break-even in sales dollars first.) Opersting leverage Asha inci and Samir Inc. have the following operating data: a. Compute the operating leverage for Asha inc and Samir inc. If required, round to one decimal place. Asha Ine Samie Ine] b. How much would operating income increase for each cempany if the sales of each increased by 30% ? c. The difference in the of operating income is due to the difference in the operating leverages. Asha Incis leverage means that its foxed costs are a percentage of contribution margin than are samir Incis. operating

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