Ch5 - 5-3 High activity: (3,608, 8,111) Low activity: (186,...

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Unformatted text preview: 5-3 High activity: (3,608, 8,111) Low activity: (186, 1,712) (8,111 – 1712) / (3608 – 186) = 6399 / 3422 = $1.87/day (variable) 1712 – (1.87 * 186) = $1,364 (fixed) 5-4 Sales…800,000 Variable expenses: Variable production… 300,000 Variable selling… 100,000 Variable administrative… 40,000 Contribution Margin… 360,000 Fixed expenses: Fixed selling… 150,000 Fixed administrative… 120,000 Net operating income… 90,000 360,000 / 2,000 surfboards = $180 5-6 60,000 Total Costs: Variable Costs Fixed Costs Total Costs Cost per unit: Variable Costs Fixed Costs Total cost per unit Units Produced and Sold 80,000 100,000 150,000 360,000 510,000 200,000 360,000 560,000 250,000 360,000 610,000 2.50 6.00 8.50 2.50 4.50 7.00 2.50 3.60 6.10 Variable cost per unit: 150,000 / 60,000 = $2.50/unit Y = 2.5x + 360,000 Income Statement Sales… 675,000 Variable Expenses… 225,000 Contribution Margin… 450,000 Fixed Expenses… 360,000 Net operating income… 90,000 5-9 (13,920 – 10,880) / (120,000 – 80,000) = 3,040 / 40,000 = $.076/mile (variable) 13,920 – 9,120 = $4,800 (fixed) Y = .076x + 48,000 $12,400 for 100,000 miles 5-10 (7,000, 29,000) high (3,000, 17,000) low (29,000 – 17,000) / (7,000 – 3,000) = $3/X-ray (variable) 29,000 – 21,000 = $8,000 (fixed) Y = 3x + 8,000 $21,800 for 4,600 X-rays ...
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This note was uploaded on 08/30/2011 for the course ACG 2071 taught by Professor Smith during the Spring '07 term at University of Central Florida.

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