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

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

Total monthy manufacturing costs $=$$

$x$$$600,000xx+5$

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

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

$x$ units

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

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

$x$ units

$d.$ Prepare a January contribution income statement using variable costing$-$

Note: $Do$ not use a negative sign with any $of$ your answers.