Mastery Problem: Cost-Volume-Profit
Analysis
Cost Behavior
Cover-to-Cover Company is a manufacturer of shelving for books.
The company has compiled the following cost data, and wants your
help in determining the cost behavior. After reviewing the data,
complete requirements (1) and (2) that follow.
Units
Produced
Total
Lumber
Cost
Total
Utilities
Cost
Total Machine
Depreciation
Cost
14,000 shelves
$154,000
$17,100
$145,000
28,000 shelves
308,000
33,200
145,000
56,000 shelves
616,000
65,400
145,000
70,000 shelves
770,000
81,500
145,000
1. Determine whether the costs...