[The following information applies to the questions displayed below.] Alden Co.\

Question

[The following information applies to the questions displayed below.] Alden Co.'s monthly sales and cost data for Its operating actvities of the past year follow. Management wants to use these data to predict future fixed and varlable costs. Month Total Cost Month Sales Total Cost 242,000 156,750 60,000 135,625 99,000 76,650 Sales 355,000 275,000 75,000 155,000 99,000 105,000 325,000 162,500 2 170,000 106,250 270,000 210,600 210,000 105,000 295,000 206,500 195,000 8 9 10 4 6 117,000 12 value 10.00 points 2. Estimate both the variable costs per sales dollar and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of Variable Cost per Sales Dollar High-Low method - Calculation of Fixed Costs Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per sales dollar Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per sales dollar Total variable costs at the low point Total fixed costs

Explanation / Answer

Vairable cost = 182,000/280,000 = $.65 per sales dollar

3)Forecated contribution margin income statment

high 355,000 242,000 low 75,000 60,000 difference 280,000 182,000

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