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    Accounting:Fixed cost,mixed cost,high-low,break-even,

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    4-2. Account analysis: Lancer Audio produces a high-end DVD player that sells for $1250. Total for July operating expenses were as follows:

    Units produced and sold 140

    Component cost 67000
    Supplies 1680
    Assembly labor 23500
    Rent 2200
    Supervisor salary 5500
    Electricity 250
    Telephone 180
    Gas 200
    Shipping 1540
    Advertising 2500
    Administration costs 14500
    Total 119050

    Required:

    A. Use account analysis to determine fixed cost per month and variable cost per DVD player.
    B. Project total cost for August assuming production and sales of 160 units.
    C. What is the contribution margin per DVD?
    D. Estimate total profit assuming production and sales of 160 units.
    E. Lancer audio is considered an order for 100 DVD players, to be produced in the next 10 months, from a customer in Canada. The selling price will be $900 per unit (under the normal price). However, the Lancer Audio name will not be attached to the product. What will be the impact on company profit associated with this order?

    4-3. High low, break even. Lancer audio produces a high-end DVD player that sells for 1250. Total operating expenses for the past 12 months are as follows:

    Units produced and sold cost
    August 125 112,670
    September 145 121,990
    October 150 129,500
    November 160 131,500
    December 165 139,700
    January 140 117,400
    February 145 125,600
    March 135 115,400
    April 130 116,140
    May 135 119,220
    June 145 121,700
    July 140 119,050

    Required:

    A. Use the high-low method to estimate fixed and variable cost.
    B. Based on these estimates, calculate the break-even level of sales in units.
    C. Calculate the margin of safety for the coming august assuming estimated sales of 160 units.
    D. Estimate total profit assuming production and sales of 160 units.
    E. Comment on the limitations of high-low method in estimating costs for Lancer audio.

    4.6 Account analysis, High-low, contribution margin. Information on occupancy and costs at the New Hotel for April, May, and June are indicated below:

    April May June
    Occupancy 1500 1650 1800
    Day Manager salary 4200 4200 4200
    Night manager salary 3700 3700 3700
    Cleaning Staff 15300 15600 15900
    Depreciation 12000 12000 12000
    Food and beverages 4600 5300 5800
    Total 39800 40800 41600

    Required:
    A. Calculate the fixed costs per month and the variable cost per occupied room using account analysis for April.
    B. Calculate the fixed costs per month and the variable cost per occupied room using the high-low method.

    C. Average room rates are $110 per night. What is the contribution margin per occupied room? In answering this question

    Use your variable cost estimate from part b.

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    https://brainmass.com/business/financial-accounting-bookkeeping/accounting-fixed-cost-mixed-cost-high-low-break-even-280575

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    Solution Summary

    The problem set deal with accounting problems:break-even analysis,cost estimation,high-low method etc.

    $2.19

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