I'll rate do not skip any parts please if you can't dodon't do at all pass it to someone else don't waste my questionthanks ( I need all answers Cost behavior, High low, contributionmargin, Sales mix, target profit Etc)

Cover-to-Cover Company is a manufacturer of shelving forbooks. The company has compiled the following cost data, and wantsyour help in determining the cost behavior. After reviewing thedata, complete requirements (1) and (2) that follow.

Units	Total	Total	TotalMachine
Produced	Lumber Cost	Utilities Cost	Depreciation Cost
13,000 shelves	$156,000	$15,950	$145,000
26,000 shelves	$312,000	$30,900	$145,000
52,000 shelves	$624,000	$60,800	$145,000
65,000 shelves	$780,000	$75,750	$145,000

1. Determine whether the costs in the table are variable, fixed,mixed, or none of these.

	Variable Cost	Fixed Cost	Mixed Cost	None of these
Lumber
Utilities
Depreciation

2. For each cost, determine the fixed portion of the cost, andthe per-unit variable cost. If there is no amount or an amount iszero, enter "0". Recall that, for N= Number of Units Produced,Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Completethe following table with your answers.

Cost	Fixed Portion of Cost	Variable Portion of Cost (per Unit)
Lumber
Utilities
Depreciation

High-Low

Biblio Files Company is the chief competitor of Cover-to-CoverCompany in the bookshelf business. Biblio Files is analyzing itsmanufacturing costs, and has compiled the following data for thefirst six months of the year. After reviewing the data, answerquestions (1) through (3) that follow.

Month	Number of Units Produced	TotalCost
January	4,360	$65,600
February	250	$6,250
March	1,000	$15,000
April	5,250	$56,250
May	1,750	$32,500
June	3,015	$48,000

1. From the data previously provided, help Biblio Files Companyestimate the fixed and variable portions of its total costs usingthe High-Low Method. Recall that Total Costs = (Variable Cost PerUnit x Units Produced) + Fixed Cost. Complete the followingtable.

Total FixedCost	Variable Cost perUnit

2. With your Total Fixed Cost and Variable Cost per Unit fromthe High-Low Method, compute the total cost for the followingvalues of N (Number of Units Produced).

Number of UnitsProduced	TotalCosts
3,500
4,360
5,250

3. Why does the total cost computed for 4,360 units not matchthe data for January in the table at the top of this panel?

The High-Low method gives accurate data only for levels ofproduction outside the relevant range.

The High-Low method gives a formula for the estimated total costand may not match levels of production other than the highest andlowest.

The High-Low method is accurate only for months in whichproduction is at full capacity.

The High-Low method only gives accurate data when fixed costsare zero.

Contribution Margin

Review the contribution margin income statements forCover-to-Cover Company and Biblio Files Company on their respectiveIncome Statements panels. Complete the following table from thedata provided in the income statements. Each company sold 84,800units during the year.

	Cover-to-Cover Company	Biblio Files Company
Contribution margin ratio (percent)
Unit contribution margin
Break-even sales (units)
Break-even sales (dollars)

Income Statement - Cover-to-Cover

Cover-to-Cover Company

Contribution Margin Income Statement

For the Year Ended December 31

1	Sales			$424,000.00
2	Variable costs:
3	Manufacturing		$212,000.00
4	Selling		21,200.00
5	Administrative		63,600.00	296,800.00
6	Contribution margin			127,200.00
7	Fixed Costs:
8	Manufacturing		$5,000.00
9	Selling		4,000.00
10	Administrative		54,600.00	63,600.00
11	Income from operations			$63,600.00

Income Statement - Biblio Files

Biblio Files Company

Contribution Margin Income Statement

For the Year Ended December 31

1	Sales			$424,000.00
2	Variable costs:
3	Manufacturing		$169,600.00
4	Selling		16,960.00
5	Administrative		33,920.00	220,480.00
6	Contribution margin			203,520.00
7	Fixed Costs:
8	Manufacturing		$121,920.00
9	Selling		8,000.00
10	Administrative		10,000.00	139,920.00
11	Income from operations			$63,600.00

Sales Mix

Biblio Files Company is making plans for its next fiscalyear, and decides to sell two new types of bookshelves, Basic andDeluxe. The company has compiled the following estimates for thenew product offerings.

Type ofBookshelf	SalesPrice per Unit	Variable Cost per Unit
Basic	$5.00	$1.75
Deluxe	$9.00	$8.10

The company is interested in determining how many of each typeof bookshelf would have to be sold in order to break even. If wethink of the Basic and Deluxe products as components of one overallenterprise product called “Combined,” the unit contribution marginfor the Combined product would be $2.31. Fixed costs for theupcoming year are estimated at $346,962. Recall that the totals ofall the sales mix percents must be 100%. Determine the amounts tocomplete the following table.

Type of Bookshelf	Percent of Sales Mix	Break-Even Sales in Units	Break-Even Sales in Dollars
Basic
Deluxe

Target Profit

Refer again to the income statements for Cover-to-CoverCompany and Biblio Files Company on their respective IncomeStatement panels. Note that both companies have the same sales andnet income. Answer questions (1) - (3) that follow, assuming thatall data for the coming year is the same as the current year,except for the amount of sales. If required, round answers to thenearest dollar.

1. If Cover-to-Cover Company wants to increase its profit by$40,000 in the coming year, what must their amount of sales be?

2. If Biblio Files Company wants to increase its profit by$40,000 in the coming year, what must their amount of sales be?

3. What would explain the difference between your answers for(1) and (2)?

Cover-to-Cover Company’s contribution margin ratio is lower,meaning that it’s more efficient in its operations.

Biblio Files Company has a higher contribution margin ratio, andso more of each sales dollar is available to cover fixed costs andprovide income from operations.

The companies have goals that are not in the relevant range.

The answers are not different; each company has the samerequired sales amount for the coming year to achieve the desiredtarget profit.