Theory 10 MARKS 1. Distinguish between a traditional income statement and a CVP income statement. 5 Marks 2. Define Mixe

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Theory 10 Marks 1 Distinguish Between A Traditional Income Statement And A Cvp Income Statement 5 Marks 2 Define Mixe 1 (70.9 KiB) Viewed 10 times

Theory 10 MARKS 1. Distinguish between a traditional income statement and a CVP income statement. 5 Marks 2. Define Mixed Costs, using a simple graphical representation if desired. Identify the steps involved in the High Low Method that allows for the determination of the components of a Mixed Cost. 5 Marks Problems Chapter 5 Pavillion Corp's activity for the first for months of 2022 is as follows: Total Cost $36,000 $43,500 $48,000 $45,750 January February March April Units 2,100 2,600 2,900 2,700 Required: a) Using the High-Low method, compute: i. the variable cost component of the Total Costs. ii. the fixed cost per month for Pavillion Corp. 30 MARKS 15 MARKS 2 Marks 2 Marks b) Based on your answer from part (a) above, if the company's selling price per unit is $25.00, compute: i. the contribution margin per unit. ii. the contribution margin ratio. iii. breakeven point in units and dollars ($). iv. sales ($) required to earn a Target Income of $12,500. V. margin of safety ($) and margin of safety ratio, if the company expects to sell 3,000 units in May. 4 Marks 1 Mark 1 Mark 3 Marks 2 Marks