The following information has been provided by Lightning Energy Bars, Inc. for the month of September, when they sold 100,000 units:
|
Cost of goods sold
|
$ 600,000
|
|
Fixed administrative expenses
|
220,000
|
|
Fixed selling expenses
|
80,000
|
|
Sales
|
1,500,000
|
|
Variable administrative expenses
|
60,000
|
|
Variable selling expense
|
240,000
|
(a) What was the company%u2019s TOTAL contribution margin for September?
(b) What was the company%u2019s contribution margin per unit?
(c) What was the company%u2019s CM ratio?
(d) What is the company%u2019s break-even point, in terms of units?
(e) I f the company has a target profit of $600,000, how many units do they need to sell?
2-Fork Plastics has examined its utilities expense for May and June. In May, the company used 2,200 machine-hours and spent $18,600 in utilities. During June the company used 2,650 machine hours and spent $21,300. Assuming utilities can be identified as a mixed cost, Fork uses the high-low method to estimate a line for utilities expense.
What line would estimate utilities?Please show your work to estimate this line, and write it as Y = a + bx