Unit sales price
Unit contribution margin
Sales volume in units
Sales volume in dollars
Contribution margin ratio
Break-even service revenue
The cost of goods sold.
Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).
Income taxes expense.
Property taxes expense.
Depreciation expense on a sales showroom, based on the straight-line method of depreciation.
Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.
Total variable costs.
Variable cost per unit.
Total fixed cost.
Fixed cost per unit.
Total semivariable costs.
Semivariable cost per unit.
a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. (Round your answer to 2 decimal places.)
a-2. Use the high-low method to determine the fixed element of monthly overhead cost.
b. Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May’s manufacturing overhead costs.
c. Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have over- or underestimated these costs?
Manufacturing overhead cost
per machine hour
Fixed element of monthly overhead cost
Estimated manufacturing overhead cost
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