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

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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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