## Sunland Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made)

Sunland Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made).

QUESTION 1

Sunland Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:

Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity. (Round variable component per copy to 2 decimal places, e.g. 0.15.)

QUESTION 2

Current Attempt in Progress

Carla has estimated that fixed costs per month are \$347,276 and variable cost per dollar of sales is \$0.32.

What is the break-even point per month in sales dollars?

What level of sales dollars is needed for a monthly profit of \$33,388?

For the month of July, the marina anticipates sales of \$980,700. What is the expected level of profit?

QUESTION 3

Headland, Inc. produces stereo speakers. The selling price per pair of speakers is \$1,000. The variable cost of production is \$370and the fixed cost per month is \$43,344. For November, the company expects to sell 128 pairs of speakers.

Calculate expected profit.

Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio and intermediate calculations to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

QUESTION 4

Uli Manufacturing produces snow shovels. The selling price per snow shovel is \$30.00. There is no beginning inventory.

In addition, the company has fixed selling and administrative costs of \$172,200 per year.

During the year, Uli produces 49,400 snow shovels and sells 44,320 snow shovels.

A) What is the value of ending inventory using full costing?

B) What is the value of ending inventory using variable costing?

C) Calculate the difference in full costing net income and variable costing net income without preparing either income statement.

D) What is the cost of goods sold using full costing?

E) What is the variable cost of goods sold?

F) What is net income using full costing?

G) What is net income using variable costing?

H) How much fixed manufacturing overhead is in ending inventory under full costing? Compare this amount to the difference in the net incomes calculated in “C” above.

Sunland Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made)