Bridgeport Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:

Copy Machine
Month		Repair Expense		Copies Made
May		$21,450			307,000
June		36,170			569,000
July		60,090			951,000
August		51,470			824,000
September		25,450			382,000

Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity. (Round variable component per copy to 2 decimal places, e.g. 0.15.)

Variable Component		$enter a dollar amount per copy rounded to 2 decimal places	per copy
Fixed Component		$enter a dollar amount per month rounded to 0 decimal places	per month

1. Pearl has estimated that fixed costs per month are $329,485 and variable cost per dollar of sales is $0.35.

What is the break-even point per month in sales dollars?

Break-even point

$enter break-even point per month in dollars

What level of sales dollars is needed for a monthly profit of $29,055?

Sales

$enter sales in dollars

For the month of July, the marina anticipates sales of $1,019,300. What is the expected level of profit?

Expected level of profit

$enter expected level of profit in dollars

1. Bridgeport, Inc. produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $380 and the fixed cost per month is $45,260. For November, the company expects to sell 124 pairs of speakers.

Calculate expected profit.

Expected profit

$enter expected profit in dollars

Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio and intermediate calculations to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio		enter contribution margin ratio rounded to 2 decimal places
Break-even sales		$enter break-even sales in dollars rounded to 0 decimal places
Expected sales		$enter expected sales in dollars rounded to 0 decimal places
Margin of safety		$enter margin of safety in dollars rounded to 0 decimal places

1. Roger Manufacturing produces snow shovels. The selling price per snow shovel is $27.00. There is no beginning inventory.

Costs involved in production are:
Direct material		$5.00
Direct labor		5.00
Variable manufacturing overhead		2.00
Total variable manufacturing costs per unit		$12.00
Fixed manufacturing overhead per year		$252,000

In addition, the company has fixed selling and administrative costs of $170,400 per year.
During the year, Roger produces 52,500 snow shovels and sells 47,850 snow shovels.

Exercise 5.11

What is the value of ending inventory using full costing?

Value of ending inventory

$enter value of ending inventory in dollars

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Exercise 5.12

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