Home / Questions / In this segment of our continuing cookie company case you will classify the costs of the b...
In this segment of our continuing “cookie company” case, you will classify the costs of the business as variable, fixed, or mixed; use the high-low method to evaluate utility costs; and prepare a contribution margin income statement.
1.Review your cookie recipe and the overhead costs you identified in Chapter 16, and classify the costs as variable, fixed, or mixed costs.
2. Obtain your electric bills for three months, and use the high-low method’s cost formula to determine the monthly cost of electricity—that is, monthly electric cost =variable rate per kilowatt-hour + monthly fixed cost. If you do not receive an electric bill, use the following information:
Month |
Kilowatt-Hours Used |
Electric Costs |
August |
1,439 |
$202 |
September |
1,866 |
230 |
October |
1,146 |
158 |
3. Prepare a daily contribution margin income statement based on the following assumptions:
Cookie Company makes only one kind of cookie and sells it for $1.00 per unit. The company projects sales of 500 units per day. Projected daily costs are as follows:
Type of Cost |
Manufacturing |
Nonmanufacturing |
Variable |
$100 |
$50 |
Non variable |
120 |
60 |
a. What is the contribution margin ratio?
b. What volume, in terms of units, must the company sell to break even each day?
Jun 24 2020 View more View Less
The damage X,, of a system subjected to wear is a Markov chain with the transition probability matrix
Aug 04 2020Economists believe the cost-benefit principle is:1. a simple but useful model of how people should make choices.2. is a comprehensive description of all the factors that ...
May 09 2021Suppose that two countries, Vietnam and Côte d'Ivoire, produce coffee. The currency unit used in Vietnam is the dong (VND). Côte d'Ivoire is a member of the Communauté Fi...
Jun 07 2021AI appears to be the next level of innovation, any challenges with this?
Aug 24 2020Suppose that 20 sticks are broken, each into one long and one short part. By pairing them randomly, the 40 parts are then used to make 20 new sticks.(a) What is the proba...
Aug 03 2020Imagine an archer is able to hit the bull’s-eye 82% of the time. Assume each shot is independent of all others. If the archer shoots 10 arrows, then the probability that ...
Apr 23 2020As an engineer propose 3 different solution to solve traffic problem in airport and highway in Kuwait and apply ENGINEERING DESIGN PROCESS AS WELL AS THE decision matrix ...
Apr 18 2021Weights of Coke. Construct a frequency table for the weights (in pounds) given below of 36 cans of regular Coke. Start the first bin at 0.7900 pound and use a bin width o...
Apr 13 2020Draw the influence lines for the horizontal and vertical reactions at supports A and B of the frames shown in Figs. P8.35 and P8.36.
Jul 07 2020The contents of the stirred-tank heating system shownin Fig. E4.10 are heated at a constant rate of Q(Btu/h)using a gas-?red heater. The ?ow rate w(lb/h) and volumeV(ft3)...
Apr 15 2020