How much are estimated monthly variable costs

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Reference no: EM13690395

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 19,000 27,600

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:

	January	February	March	April	May	June	July
Number of rooms cleaned	250	160	200	150	285	170	260
Cleaning cost	$6,450	$4,060	$5,100	$4,100	$7,000	$4,200	$6,530

How much are estimated monthly variable costs using the high-low method?

3. Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,300, how many dollars of revenue must the company generate in order to reach the break-even point?

4. 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	$92,400 per year
Selling & administrative	24,600 per year

How many units must be sold to break-even?

5. Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $80, unit variable cost is $35, and the fixed costs per month are $5,000.

Reference no: EM13690395

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