Simon Company’s high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $78,000 in May and $30,000 in November. Using the high low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.
Question 10 options:
A)$67,500
B)$72,000
C)$58,500
D)$60,000
Keith Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?
Question 11 options:
A)70%
B)60%
C)40%
D)30%