Felix & Co. reports the following information about its sales and cost of sales. Cost of...

 

 

 

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Felix & Co. reports the following information about its sales and cost of sales. Cost of Sales Period 1. 2. 3. 4. 5. 12445 Cost of Sales 0 $ 2,620 3,220 3,820 Units Sold 520 920 1,320 1,720 4,420 5,020 CA $ Period 6. 7. $ 8. 9. 10. Units Sold 2,120 2,520 2,920 3,320 3,720 Use the high-low method to calculate the variable component of the cost of sales. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Variable cost per unit Use the high-low method to calculate the fixed component of the cost of sales. (Omit the "$" sign in your response.) Fixed cost 5,620 6,220 6,820 7,420 8,200 A pants maker is designing a new line of pants called the Redbird. The pants will sell for $280 per pair and cost $170.80 per pair in variable costs to make. (1) Compute the contribution margin per pair. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Contribution margin $ per unit (2) Compute the contribution margin ratio. (Round your intermediate calculation to 2 decimal places. Omit the "%" sign in your response.) Contribution margin ratio % Match each of the following definitions of costs to the cost classifications. 1. This cost increases in direct proportion to increases in volume; its amount is constant for each unit produced. 2. This cost remains constant over a limited range of volume; when it reaches the end of its limited range, it changes by a lump sum and remains at that level until it exceeds another limited range. 3. This cost has a component that remains the same over all volume levels and another component that increases in direct proportion to increases in volume. 4. This cost increases when volume increases, but the increase is not constant for each unit produced. 5. This cost remains constant over all volume levels within the productive capacity for the planning period. 6. This cost is the combined amount of all the other costs. Felix & Co. reports the following information about its sales and cost of sales. Cost of Sales Period 1. 2. 3. 4. 5. 12445 Cost of Sales 0 $ 2,620 3,220 3,820 Units Sold 520 920 1,320 1,720 4,420 5,020 CA $ Period 6. 7. $ 8. 9. 10. Units Sold 2,120 2,520 2,920 3,320 3,720 Use the high-low method to calculate the variable component of the cost of sales. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Variable cost per unit Use the high-low method to calculate the fixed component of the cost of sales. (Omit the "$" sign in your response.) Fixed cost 5,620 6,220 6,820 7,420 8,200 A pants maker is designing a new line of pants called the Redbird. The pants will sell for $280 per pair and cost $170.80 per pair in variable costs to make. (1) Compute the contribution margin per pair. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Contribution margin $ per unit (2) Compute the contribution margin ratio. (Round your intermediate calculation to 2 decimal places. Omit the "%" sign in your response.) Contribution margin ratio % Match each of the following definitions of costs to the cost classifications. 1. This cost increases in direct proportion to increases in volume; its amount is constant for each unit produced. 2. This cost remains constant over a limited range of volume; when it reaches the end of its limited range, it changes by a lump sum and remains at that level until it exceeds another limited range. 3. This cost has a component that remains the same over all volume levels and another component that increases in direct proportion to increases in volume. 4. This cost increases when volume increases, but the increase is not constant for each unit produced. 5. This cost remains constant over all volume levels within the productive capacity for the planning period. 6. This cost is the combined amount of all the other costs.

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Change in cost Change in volume Total cost at the high point V... View the full answer