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Miller Metal Co. makes a single product that sells for $40.5 per unit. Variable costs are $26.

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Question;1. Miller Metal Co. makes a single product that sells for $40.5 per unit. Variable costs are $26.2 per unit, and fixed costs total $65,975 per month.Required:a. Calculate the number of units that must be sold each month for the firm to break even. (Do not round your intermediate calculations.)Break-even volume Unitsb. Assume current sales are $405,000. Calculate the margin of safety and the margin of safety ratio.Margin of safety Margin of safety ratio %2. A department of AIpha Co. incurred the following costs for the month of September. Variable cost, and the variable portion of mixed cost, are a function of the number of units of activity:Activity level in units 4,500Variables costs 9,900Fixed cost31,000Mixed costs 16,220Total costs $57,120During October the activity level was 9,400 units, and the total costs incurred were $69,500.Required:a. Calculate the variable costs, fixed costs, and mixed costs incurred during October. (Do not round Intermediate calculations.)OctoberVariable cost Fixed cost Mixed cost b. Use the high-low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round your answers to two decimal places.)

 

Paper#47611 | Written in 18-Jul-2015

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