High-Low Method

Shatner 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			Total Costs
3,330			$390,060
1,700			354,960
5,100			552,160

a. Determine the variable cost per unit and the total fixed cost.

Variable cost: (Round to the nearest dollar.)	$ per unit
Total fixed cost:	$

b. Based on part (a), estimate the total cost for 2,450 units of production.

Total cost for 2,450 units:

$

Contribution Margin Ratio

a. Bert Company budgets sales of $1,190,000, fixed costs of $66,900, and variable costs of $297,500. What is the contribution margin ratio for Bert Company? (Enter your answer as a whole number.) %

b. If the contribution margin ratio for Ernie Company is 31%, sales were $670,000, and fixed costs were $159,930, what was the income from operations? $