Reference no: EM131013520
1. Thomas Train has collected the following information over the last six months.
Month Units produced Total costs
March 10,000 $25,600
April 12,000 26,200
May 18,400 29,200
June 13,000 26,450
July 12,000 26,000
August 15,000 26,500
Using the high-low method, what is the variable cost per unit?
2. Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:
|
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January
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February
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March
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April
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May
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June
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July
|
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Number of rooms cleaned
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250
|
160
|
200
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150
|
270
|
170
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260
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Cleaning cost
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$6,450
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$4,060
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$5,100
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$4,100
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$7,000
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$4,200
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$6,530
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How much are estimated monthly variable costs using the high-low method?
3. Tim Taylor has written a self improvement book that has the following cost characteristics:
Selling Price $16.00 per book
Variable cost per unit:
Production $4.00
Selling & administrative 2.00
Fixed costs:
Production $94,200 per year
Selling & administrative 22,500 per year
How many units must be sold to break-even?
4. Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable cost is $40, and the fixed costs per month are $5,000. The margin of safety is: