Comprehensive Problem 5 Part A: Note: You must complete part A before completing

Question

Comprehensive Problem 5
Part A:

Note:  You must complete part A before completing parts B and C.

Part A - Break-Even Analysis

Instructions:

1.  Determine the fixed and variable portion of the utility cost using the high-low method. Round the per unit cost to the nearest cent.

2.  Determine the contribution margin per case. Enter your answer to the nearest cent. For example, 89.458 would be entered as 89.46

Contribution margin per case: $                   _________________             

3.  Determine the fixed costs per month, including the utility fixed cost from part (1). Enter your answers to the nearest whole number. For example, 89.45 would be entered as 89 and 89.56 would be entered as 90.

4.  Determine the break-even number of cases per month. Round your answer to the nearest whole number.
                  _________________              cases

At High Point At Low Point Variable Cost per Unit $                   _________________              $                   _________________              Total Fixed Cost $                   _________________              $                   _________________              Total Cost $                   _________________              $                   _________________              DIRECT MATERIALS Cost: Units Cost Direct Materials Behavior per Case per Unit Cost per Case variable 1.08 Cream base 72 oz $0.015 Natural oils Variable 24 ozs. 0.250 6.00 12 bottles 0.400 480 Bottle (8-oz) Variable $11.88 DIRECT LABOR Labor Rate Cost Time Direct Labor Department Behavior per Case per Hour Cost per Case Mixing Variable 16.8 min. $15.00 $4.20 Variable Filling 4.2 12.00 0.84 21.0 min. $5.04 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed 230 12,043 Facility lease Fixed Equipment depreciation Fixed 3,600 Supplies Fixed 600 $16,473

Explanation / Answer

1.0.10

2. high pt 200 low pt 200 (cases)

3.80,000/1.88/5.04/0.10/16.00=33.02=46.98

4. 400 (cases)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.