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Required information (The following information applies to the questions displayed below.) Kubin Company's relevant range of production is 29,000 to 33,000 units. When it produces and sells 31,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 8.90 $ 5.90 $ 3.40 $ 6.90 $ 5.40 $ 4.40 $ 2.90 $ 2.40 Required: 1. If 29,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 33,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 29,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 33,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 29,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 33,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 29,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 33,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? (Round per unit values to 2 decimal places.) 29,000 Units 33,000 Units 1. & 2. Variable cost per unit produced and sold 3. & 4. Total amount of variable cost related to units produced and sold 5. & 6. Average fixed manufacturing cost per unit produced 7. & 8. Total amount of fixed manufacturing overhead Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: September 8,000 $ 840,000 504,000 336,000 Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July August Sales in units 7,000 7,500 Sales $ 735,000 $ 787,500 Cost of goods sold 441,000 472,500 Gross margin 294,000 315,000 Selling and administrative expenses: Advertising expense 36,400 36,400 Shipping expense 75,000 79,400 Salaries and commissions 120,000 127,200 Insurance expense 8,400 8,400 Depreciation expense 22,800 22,800 Total selling and administrative expenses 262,600 274,200 Net operating income $ 31,400 $ 40,800 36,400 83,800 134,400 8,400 22,800 285,800 $ 50,200 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. 3. Redo the company's income statement at the 8,000-unit level of activity using the contribution format. Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. 3. Redo the company's income statement at the 8,000-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed the form Y = a + bx. (Round the Variable cost per unit to 1 decimal place.) Variable Cost Fixed Cost Formula per unit Y = + x Shipping expense Salaries and commissions expense per unit Y = + X Redo the company's income statement at the 8,000-unit level of activity using the contribution format. .................................. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 Variable expenses: 0 0 Fixed expenses: 0 $ 0

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