#### Description of this paper

##### Given the following cost and activity observations for Sanchez Company's utilities,

**Description**

solution

**Question**

Problems;Given the following cost and activity observations for Sanchez Company's utilities, use the high-low method to calculate Sanchez's variable utilities costs per machine hour.;Cost Machine Hours;May $8,300 15,000;June 10,400 20,000;July 7,200 12,000;August 9,500 18,000;$10.00;$.60;$.40;$.52;24. If fixed costs are $500,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $80,000?;14,500;12,500;8,333;9,667;25. If fixed costs are $490,000, the unit selling price is $35, and the unit variable costs are $20, what is the break-even sales (units) if fixed costs are reduced by $40,000?;32,667 units;14,000 units;30,000 units;24,500 units;26. If fixed costs are $39,600, the unit selling price is $42, and the variable costs are $24, what is the break-even sales (unit) if the variable costs are decreased by $2?;1,650;990;1,980;1,350;27. Assume that Crowley Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $20 and $45 respectively. Crowley has fixed costs of $350,000. The break-even point in units is _______.;14,000 units;25,278 units;8,000 units;10,769 units

Paper#26467 | Written in 18-Jul-2015

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