Variable and Absorption Costing with High$-$Low Cost Estimation and CVP Analysis Including Taxes

Presented are the Charger Company's functional income statements for January and February.

Required

a$.$ Using the high$-$low method $($see Chapter $2),$ develop a cost$-$estimating equation for total monthly manufacturing costs.

Total monthy manufacturing costs $=$ :

b$.$ Determine Charger Company's monthly break$-$even point.

Note: Round your answer UP to the nearest whole unit $($for example, enter $58$ for $57\mathrm{.}1).$

units

c$.$ Determine the unit sales required to earn a monthly after$-$tax income of $\backslash (\backslash$$ $600,000\backslash ).$

Note: Round your answer UP to the nearest whole unit $($for example, enter $58$ for $57\mathrm{.}1).$

$25,188$

units