Flannigan Company manufactures and sells a single product that sells for $600 per unit: variable costs...

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Flannigan Company manufactures and sells a single product that sells for $600 per unit: variable costs are $324. Annual fixed

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $577.500 to $741.000 and w

The following information is available for a companys utility cost for operating its machines over the last four months. Mon

Multiple Choice i o О $751. o О $4.53. o О $3.35. o О $6.27. o ( $1.94

business accounting

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Answer 1

Answer #1

Break even point = Fixed cost/Contribution margin per unit

= 984,400/(600-324)

= 3567

Option B

Contribution margin ratio = (130 - 65)/130

= 50%

Option C

Variable cost = (Cost at highest activity - Cost at lowest activity) /(Highest activity-Lowest activity)

= (8100-4580)/(2420-610)

= 1.94

Option E

From next time, please post the questions separately. Only fist question should be answered as HOMEWORKLIB

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Answer 2

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