80.2K

Verified Solution

Link Copied!

what is the total variable cost? variable cost per dollar of sales*sales.

is this considered fixed costs?

see the attached.

please do for AKSteel and Nucor .

#2 on the sheet what is the totsl variable costs? please look at sheet 1 for the figures for the both companies

edun al, pa may be inted by kenneth.de ardinden reproduced or med v p l y. No part of this o tatowi beproewed $5.217 4554 54,042 53,887 5 155 3. AK Steel Sales Cost of products sold Gross profit Gross margin Nucor Sales Cost of products sold Gross profit Gross margin 56,266 55,997 $ 269 4.3% $11.377 $9,129 $ 2.248 19.8% industry analysts anticipate the following annual changes in sales for the next five years. Year! +1, 39 increase; Year + 2, 10% increase; Year -3, 20% increases Year +4, 10% decreases Yem +5, 20% decrease. REQUIRED . Estimate the variable cost as a percentage of sales for the cost of products sold by divid ing the amount of the change in the cost of products sold by the amount of the change in sales. Then multiply the variable-cost percentage times sales to estimate the worlar able cost. Subtract the variable cost from the total cost to estimate the foxed cost for con of products sold. Follow this procedure to estimate the manufacturing cost suure friable cost as a percentage of sales, total variable costs, and total fixed costs for cost 1. Variable Cost per Dollar of Sales Change in cost of Products Sold / Change in Sales: 2. Total Variable Cost Variable Cost per Dollar of Sales Sales: 3. Total Fixed Cost - Total cost of Product Sold - Total Variable Cost: Pg. 703-704 8. Structure of Manufacturing Cost: in one paragraph, compare the structure of manufacturing costs for each firm. C Projected Financial Information: Compute the projected sales, cost of products sold, gross profit, and gross margin (gross profit as a percentage of of each firm for Year + 1 through Year 5. Using the table below or a similar spreadsheet is recommended. Year +1 Year +2 Year +3 Year 4 Year +5 AK Steel Sales Less Cost of Product Sold: Variable Cost (0.568 of Sales) Fixed Costs Total Costs of Products Sold Gross Profit Gross Margin % Year +1 Year +2 Year +3 Year +4 Year +5 Nucor Sales Less Cost of Product Sold: Variable Cost (0.613 of Sales) Fixed Costs Total Costs of Products Sold Gross Profit Cross Margin %

Answer & Explanation Solved by verified expert

See Answer