10.00 points Felix& Co. reports the following information about its sales and co

Question

10.00 points Felix& Co. reports the following information about its sales and cost of sales. Cost of Sales 0 2,560 460 3,160 3,760 1,260 4,360 1,660 4,960 Units Sold Units Sold Cost of Period Sales 6. 7. 8. 9. 10. 2,060 2,460 2,860 3,260 3,660 5,560 6,160 6,760 7,360 8,050 2. 3. 860 5. Use the high-low method to calculate the variable component of the cost of sales. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Variable cost per unit Use the high-low method to calculate the fixed component of the cost of sales. (Omit the "" sign in your response.) Fixed cost Hints References 14 MacBook P esc

Explanation / Answer

FELIX AND CO: Variable component of sales using High-Low method = (Cost of sales at highest level of sales-Cost of sales at lowest of sales)(Units at highest level-Units at lowest level) = (8050-2560)/(3660-0) = $                     1.50 VARIABLE COST = $1.50 FIXED COMPONENT = 8050-3660*1.5 = $             2,560.00 APPOLLO COMPANY: 1) Break even point in units = Fixed cost/Contribution margin per unit = 664400/(220-176) = 15100 CONTRIBUTION MARGIN INCOME STATEMENT AT BREAK EVEN Sales (220*15100) $          33,22,000 Variable cost (176*15100) $          26,57,600 Contribution margin $             6,64,400 Less: Fixed costs $             6,64,400 Net income $                          -   2) Sales in dollars needed to break even = Fixed costs/CM ratio = (664400+136000)/(44/220) = $          40,02,000 CHECK: Sales $          40,02,000 Variable cost [80%] $          32,01,600 Contribution margin $             8,00,400 Less: Fixed costs $             8,00,400 Net income $                          -   APPOLLO COMPANY: Before tax profits required = 665000/70% = $             9,50,000 Total Contribution Margin required = 950000+562400 = $          15,12,400 1) Units sales required to target after tax annual income of 665000 = 1512400/CM per unit = 1512400/(190-152) = 39800 Units 2) Dollar sales required = 39800*190 = $          75,62,000

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