Thomas Train has collected the following information over the last six months. Month Units produced Total costs
Question:
Thomas Train has collected the following information over the last six months.
| Month | Units produced | Total costs |
| March | 10,000 | $25,600 |
| April | 12,000 | 26,200 |
| May | 18,400 | 28,400 |
| June | 13,000 | 26,450 |
| July | 12,000 | 26,000 |
| August | 15,000 | 26,500 |
Using the high-low method, what is the variable cost per unit?
Round to two decimal places.
Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:
| January | February | March | April | May | June | July | |
| Number of rooms cleaned | 250 | 160 | 200 | 150 | 285 | 170 | 260 |
| Cleaning cost | $6,450 | $4,060 | $5,100 | $4,100 | $7,000 | $4,200 | $6,530 |
How much are estimated monthly variable costs using the high-low method?
Round to two decimal places.
Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $180,300, how many dollars of revenue must the company generate in order to reach the break-even point?
Round to two decimal places.
Tim Taylor has written a self improvement book that has the following cost characteristics:
| Selling Price | $16.00 per book |
| Variable cost per unit: | |
| Production | $4.00 |
| Selling & administrative | 2.00 |
| Fixed costs: | |
| Production | $93,200 per year |
| Selling & administrative | 25,800per year |
How many units must be sold to break-even?
Round to two decimal places.
Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100, unit variable cost is $30, and the fixed costs per month are $5,000. Themargin of safety in terms of sales revenue is:
Round to two decimal places.
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