# Sandals Essay

714 Words3 Pages
4. Ingram Co. manufactures office furniture. During the most productive month of the year, 3,661 desks were manufactured at a total cost of \$84,545. In its slowest month, the company made 1,137 desks at a cost of \$41,432. Using the high-low method of cost estimation determine total fixed costs are. Select the correct answer. \$84,545 | | | \$41,432 | | | \$43,113 | | | \$22,011 | | 5. Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month. | Cost | Machine Hours | April | \$61,255 | 1,189 | May | \$82,714 | 1,806 | June | \$97,496 | 2,474 | Using the high-low method, determine the variable cost per unit, and the total fixed costs. Select the correct answer. \$28.20 per unit and \$69,775 respectively. | | | \$28.20 per unit and \$27,721 respectively. | | | \$30.45 per unit and \$27,721 respectively. | | | \$30.45 per unit and \$69,775 respectively. | | | 6. If sales are \$791,788, variable costs are 80% of sales, and operating income is \$233,054, what is the contribution margin ratio? Select the correct answer. 80% | | | 20% | | | 29% | | | 71% | | 7. A firm operated at 80% of capacity for the past year, during which fixed costs were \$199,990, variable costs were 69% of sales, and sales were \$1,094,670. Find the operating profit. Select the correct answer. \$199,990 | | | \$755,322 | | | \$955,312 | | | \$139,358 | | 8. Variable costs as a percentage of sales for Leamon Inc. are 61%, current sales are \$517,801. and fixed costs are \$197,934. How much will operating income change if sales increase by \$41,139? Select the correct answer. \$41,139 increase | | | \$25,095 decrease | | | \$16,044 increase | | | \$16,044 decrease | | 9. If