Q# 1 D

Per truck 1,200 (1,000 + .25 x 800)

No. of trucks 3
Expected cost 3,600

Q# 2 D
VC/DLH 66.00 (20 + 30 + 16)
x DLH 1,500.00
99,000.00
FC 10,300.00 (100 + 200 + 10,000)
109,300.00

Q# 3 D
Eq. 1 $220,000 = A + 75,000B
Eq. 2 $275,000 = 1.2A + 100,000B
Eq. 3 = Eq. 1 x 1.2 $264,000 = 1.2A + 90,000B
Eq. 2 - Eq. 3 $ 11,000 = 10,000 B
VC/unit B = 1.10
FC @ 75,000 units A = 137,500
FC @ 100,000 units 1.2A = 165,000

Q# 4 Sales 12.00 708,333.33

Variable Cost
Contribution Margin 2.40 20% 1,700,000.00
Fixed Costs 1,200,000.00
Operating Income 500,000.00

Q# 5 C High Low Difference VC/DLH

Cost 8,500.00 6,750.00 1,750.00 3.50
DLH 2,000.00 1,500.00 500.00

Q# 6 C Cost X 178,260.00 23,700.00 154,560.00 4.83

Units produced 35,000.00 3,000.00 32,000.00

Total cost @ 8,000 units 47,850.00

Per unit 5.98

Q#7 Variable cost per unit 8.50

Machine hours 2,500.00
 21,250.00

Q#8 Y = 2,500 + 5.0X

Choose machine hours as cost driver because it has the higher r-squared

Q#9 Sales 160.00 - 16.00 144.00

Variable Cost 100.00 100.00
Contribution Margin 60.00 44.00 30.6%

Q#10 Accounts receivable 129,000.00

Days sales outstanding 15.00

Sales 100% 3,096,000.00

Variable Cost
Contrinbution Margin 49% 1,517,040.00
Fixed Costs 1,032,000.00
Operating Income 485,040.00

Breakeven point 2,106,122.45

Q#11 Quantity 111,000.00 75,000.00

Sales 25.00 25.00
Variable Cost 15.00 12.50
Contribution Margin 1,200,000.00 10.00 750,000.00 12.50
Fixed Costs 1,200,000.00
Operating Income

Q#12 Quantity 583,200.00

Sales 40.00
Variable cost 24.00
Contribution margin 16.00
Fixed costs 9,331,200.00
Operating income

Q#13
FC
1,500.00

9,210.00
 36,000.00

450,000.00