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Brookcette Pork Income Statement For the year ended December 31, 2019 9,425 (4,625) 4,800 Sales revenue Cost of goods sold Gross profit Operating expenses: Marketing Equipment Supplies Sallary Total operating expenses Operating income 50 250 450 600 (1,350) 3,450 Note - During the 2019, 15 hogs were raised to market Brookcette Beef Contribution Maring Income Statement For the year ended December 31, 2019 Sales revenue Variable cost Contribution margin Fixed cost Operating income 5,000 (3,000) 2,000 (500) 1,500 Question 1 (Chapter 3): Fill in the chart to determine the average cost and profit per hog in for the three scenarios. (Hypothetical) Yearly hog volume 10 20 40 Total fixed costs Total variable costs Total costs $ $ $ $ $ Fixed cost per hog Variable cost per hog Average cost per hog $ $ $ $ $ 600 $ 600 $ $ 600 Selling price per hog Average profit per hog Notes: - Fixed costs for one year are 1,000. - Variable cost is 320 per hog. Question 2 (Chapter 3): Use the high-low method to analyze Brookcette Pork's feed cost behaviour for the 2019 season. Month April May June July August Total Feed Cost #of Hogs 325 5 575 15 500 375 7 300 4 12 (a) What is the variable feed cost per hog? (b) What is the fixed feed cost for each month? (c) Write a cost equation for monthly feed cost for 2019. (d) What would the feed cost have been if Brookcette were to have 20 hogs during the month of May? How much more would the feed cost be? (e) What would the feed cost have been in August if the fixed feed cost was $300

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