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1. High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.   2. Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

1. High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.   2. Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...
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1. High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.

 

2.

Contribution Margin

United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $126,720 1,440 units February 174,870 3,220 March 197,120 4,640 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost
Transcribed Image Text:High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $126,720 1,440 units February 174,870 3,220 March 197,120 4,640 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost
Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) X % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
Transcribed Image Text:Contribution Margin United Merchants Company sells 39,000 units at $30 per unit. Variable costs are $17.10 per unit, and fixed costs are $216,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) X % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
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