Business, 27.04.2021 15:40 khollier3119

Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow. Month Number of Units Produced Total Cost
January 4,360 units $65,600
February 275 6,250
March 1,000 15,000
April 7,775 156,250
May 1,750 32,500
June 3,015 48,000
1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the High-Low Method.
2. With your Total Fixed Cost and Variable Cost per Unit from the High-Low Method, compute the total cost for the following values of N (Number of Units Produced).
Number of Units Produced Total Costs
3,500
4,360
5,475
3. Why does the total cost computed for 4,360 units not match the data for January in the table at the top of this panel?
A. The High-Low method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest.
B. The High-Low method only gives accurate data when fixed costs are zero.
C. The High-Low method is accurate only for months in which production is at full capacity.
D. The High-Low method gives accurate data only for levels of production outside the relevant range.
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year.
Cover-to-Cover Company Biblio Files Company
Contribution margin ratio (percent)
Unit contribution margin
Break-even sales (units)
Break-even sales (dollars)
Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings.
Type of BookshelfSales Price per UnitVariable Cost per Unit
Basic $5.00 $1.75
Deluxe $9.00 $8.10
Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income.
1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be?
2. If Biblio Files Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 02:00

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Answers: 2

Answer

Business, 22.06.2019 13:30

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.

Answers: 1

Answer

Business, 22.06.2019 18:30

Afarmer is an example of what kind of producer?

Answers: 2

Answer

Business, 22.06.2019 19:10

Do it! review 16-3 the assembly department for right pens has the following production data for the current month. beginning work in process units transferred out ending work in process 0 22,500 16,000 materials are entered at the beginning of the process. the ending work in process units are 70% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs. materials conversion costs the equivalent units of production

Answers: 2

Answer

You know the right answer?

Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Bi...

Questions