Reference no: EM131784767

Unit sold : 10000 Selling price per unit: $90 Variable costs per unit: $40 Fixed costs per unit : $20 Using high low method to separate variable and fixed component in mixed cost, given that, from previous periods, at highest point the mixed cost was $3000 at volume 1000 units. Required: 1/ Prepare last six months income statement using the contribution format which consist total value and per unit value. 2/ The company is considering 2 project: - Project 1: increase selling price by $5, the expected decreased volume is 5% - Project 2: replay one of the elements of direct which lead to the increase $2 per one product. The sales volumes are expected to increase by 8% Which project should the company choose? Considering both financial and non-financial aspects for the decision making process.