Managers at marc Corp. are concerned that the companys costs of production have gone wild....
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Accounting
Managers at marc Corp. are concerned that the companys costs of production have gone wild. The chief financial officer brings you the following historic data:
Period
Units
Costs
Quarter 1, 2016
1,120
$111,502.00
Quarter 2, 2016
980
$111,009.00
Quarter 3, 2016
1,260
$114,012.00
Quarter 4, 2016
1,3401
$115,452.00
Quarter 1, 2017
1,280
$114,301.00
Quarter 2, 2017
1,300
$114,689.00
Quarter 3, 2017
1,420
$116,735.00
Quarter 4, 2017
1,500
$118,209.00
marc corp selling price is $80 per unit
Use Excel. Using the High-low method:
Estimate the companys cost formula.
Estimate the total cost of producing 1,200 units.
Calculate the breakeven point in dollar sales.
Prepare the contribution format income statement when 1,200 units are sold.
Compute the degree of operating leverage when 1,200 units are sold. Compute Net operating income if sales increased 120 units above this level.
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