The SnowGlide Company manufacturers entry-level snowboards. Following is the SnowGlide’s monthly operating statistics.

Average selling price per board

Variable expenses per board

Direct labor cost
Direct materials cost
Variable manufacturing overhead Variable administrative expenses Total Variable cost per board Fixed costs

Dollars Percentage of sales price

$90.00 100%

2.25 2.5 28.25 31.4 3.10 3.4 2.40 2.7 36.00 40%

MBA 5023 (MBA)

December, 2020

CONFIDENTIAL

3 /5

Administrative salaries Insurance Depreciation Advertising

Total fixed cost per month

23,000.00 1,300.00 5,000.00 8,500.00 37,800.00

1. Critically discuss the cost behavior trend (Variable Cost- Fixed Cost) based on the cost-volume relationship. (9 marks)

2. Calculate the cost per board for 300, 900 and 1500 unit of production. (6 marks)

3. Construct the SnowGlide company Monthly cost-volume-profit graph and show the

   break-even point. (10 marks)

Answer rating: 100% (QA)

Note variable and fixed cost elements Notice that income taxes are not included among the monthly op... View the full answer