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

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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 Units Produced and Sold 60,000 80,000 100,000 Total Costs: Variable Costs 150,000 200,000 250,000 Fixed Costs 360,000 360,000 360,000 Total Costs 510,000 560,000 610,000 Cost per unit: Variable Costs 2.50 2.50 2.50 Fixed Costs 6.00
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern