High-Low Method. You are requested to help in the preparation of fixed budgets. The study made...
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High-Low Method. You are requested to help in the preparation of fixed budgets. The study made of the shipping expenses showed the following over a period of time, and there is no indication that past trends will change in the future: Required: (a) Variable cost per unit (b) The fixed cost portion (c) The total amount of shipping expense, assuming that the sales volume is 11,300. 2. Break-even Point and Other Information. Presented hereunder is the Statement of Comprehensive Income of DE Corporation for the year ended December 31, 2020. Sales (20,000 units) Less: Cost of Sales Gross Income Less: Selling and Administrative Exp. Operating income Other data: DE Corporation Statement of Comprehensive Income For the Year Ended December 31, 2020 (a) (b) (c) (e) (g) 1/3 of the cost of sales is fixed 75% of the selling and administrative expenses is variable 0 Required: Determine the following Total fixed cost Variable cost per unit Variable cost ratio Contribution margin per unit Contribution margin ratio Break-even point in units Break-even point in pesos High-Low Method. You are requested to help in the preparation of fixed budgets. The study made of the shipping expenses showed the following over a period of time, and there is no indication that past trends will change in the future: Required: (a) Variable cost per unit (b) The fixed cost portion (c) The total amount of shipping expense, assuming that the sales volume is 11,300. 2. Break-even Point and Other Information. Presented hereunder is the Statement of Comprehensive Income of DE Corporation for the year ended December 31, 2020. Sales (20,000 units) Less: Cost of Sales Gross Income Less: Selling and Administrative Exp. Operating income Other data: DE Corporation Statement of Comprehensive Income For the Year Ended December 31, 2020 (a) (b) (c) (e) (g) 1/3 of the cost of sales is fixed 75% of the selling and administrative expenses is variable 0 Required: Determine the following Total fixed cost Variable cost per unit Variable cost ratio Contribution margin per unit Contribution margin ratio Break-even point in units Break-even point in pesos
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a Total Fixed Cost The total fixed cost can be calculated by adding the fixed portion of cost of sales and the fixed portion of selling and administrative expenses Since 13 of the cost of sales is fix... View the full answer
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