Question

The controller of Blossom Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours 3,860 4.412 Month January February March April May June 6,618 $2,912 3.309 3,971 4,963 3,530 5,894 8.714 5.515 8.830 (21) Your answer is incorrect. Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour $

Answer 1

(al) As per_Highe low method, variable cost per_machine hour __Highest activity cost - Lowest activity bort Highest machine hours - Lowest machine hour F16] $5,894 - $2,912 8,830 hrs 3,860 hrs $ 0.60 Nextė Contribution margin in dollars = Total sales Total variable costs (630x170) (6630X170) * 70'%) $ 107,100 - $74,910 $32,130 Contribution margio per unit Sale price per unit variable cost perunit $170 - [70% of 170) $170 - $149 $ 51 Contribution margin ratío Contribution per unit sale price per unit X 100 $51 $170 X 106 30:14

Break even sales (1) - fixed cost Contribution margin ratio $ 22,440 30%.., $74,800 Break even sales in units unit Fixed cost contribution margin per $22, 440 $ 51 . 440 units I hope I've solved to the point_Please feel free to ask any queries Land.do give a thumbsup_if_the solution was satisfactory. Thank you .