[The following information applies to the questions displayed below.]Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variableand fixed costs.Month Units Sold123456320,000160,000280,000200,000300,000200,000Total Cost$ 160,000100,000220,000100,000230,000120,000Total cost at the high pointVariable costs at the high point:Volume at the high point:Variable cost per unitTotal variable costs at the high pointTotal fixed costsTotal cost at the low pointVariable costs at the low point:Volume at the low point:Variable cost per unitTotal variable costs at the low pointTotal fixed costsMonth789101112Units Sold340,000280,00080,000160,000100,000110,0001. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediatecalculations.)Total Cost$ 220,000160,00064,000140,000100,00080,000High-Low method - Calculation of variable cost per unitHigh-Low method - Calculation of fixed costs

Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 HNmin 10. 2 3 4 5 6 320,000 160,000 280,000 200,000 300,000 200,000 Total Cost Month $ 160,000 7 100,000 220,000 100,000 230,000 120,000 168 9 10 11 12 Units Sold 340,000 280,000 80,000 160,000 100,000 110,000 Total Cost $ 220,000 160,000 64,000 140,000 100,000 80,000 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)

Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 HNmin 10. 2 3 4 5 6 320,000 160,000 280,000 200,000 300,000 200,000 Total Cost Month $ 160,000 7 100,000 220,000 100,000 230,000 120,000 168 9 10 11 12 Units Sold 340,000 280,000 80,000 160,000 100,000 110,000 Total Cost $ 220,000 160,000 64,000 140,000 100,000 80,000 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (10,000 units) Variable costs Contribution margin Fixed expenses Net income $500,000 250,000 250,000 189,900 $60,100 Per Unit $50 25.00 $25.00 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 290,400 158,400 132,000 54,100 $ 77,900 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales $ 60 Selling price Variable expenses 100% 39 65 Contribution margin $21 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. Net operating income by
Eureka Corp. produces and sells a single product. Data concerning that product appear below: Per Unit Percent of. Selling Price Variable Costs and Expenses Contribution Margin Sales P170 100% 102 60% 40% P 68 Eived costs and expenses are P220,000 per month. Eureka is currently selling 4,000 units per month. The marketing mahager would like to cut the selling price by P15 and increase the advertising budget by P11,000 per month. The marketing manager predicts that these two changes Would increase monthly sales by 1,500 units. Should the marketing manager continue his plan? Present your computations to convince the manager of your advice.
Rey
X Company had the following information available for 2020: Number of units sold 32,000 units Selling price per unit $1,250 Variable cost per unit S750 Total fixed costs $14,000,000 Based on the above, the unit contribution margin is: * 40% $500 $16,000,000 O None of the above
A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
For the coming year, Cleves Company anticipates a unit selling price of $80, a unit variable cost of $40, and fixed costs of $248,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $96,000. units
An industry is going to launch a new product in the market in the year 2018. The data pertaining to the costs and the estimated sales is provided as follows 1. Fixed cost for the year 2018-2019 is 20000$. 2. The variable cost per unit is 12$. 3. The estimated sales are 800000$. 4. If each unit is sold at 30$. Find out 1. Break-even point. 2. The profit at a turn-over of 25000 units. 3. Margin of safety in terms of units and sales. 4. If a profit target is 1200000$, compute the turn over required. 5. Also construct the break-even chart and show the details on it.