During its most recent fiscal year, Dover, Inc. had total sales of $3,260,000. Contribution margin amounted to $1,530,000 and pretax income was $445,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year

$1,730,000

Explanation:

Given that;

Total sales = $3,260,000

Contribution margin = $1,530,000

Pretax income = $445,000

We know that

Contribution margin = Total sales - variable cost

Fixing in the above values, we'll have

$1,530,000 = $3,260,000 - Variable cost

Variable cost = $3,260,000 - $1,530,000

Variable cost = $1,730,000

b. 0.67

Explanation:

UCL = 1 + 0.10

        = 1.10 inch

LCL = 1 - 0.10

       = 0.9 inch

standard deviation = 0.005 inch

mean = 1 inch

Cpk

= min[(UCL - mean)/(3*standard deviation) , (mean - LCL)/(3*standard deviation))]

= min[(1.10 - 1)/(3*0.05) , (1 - 0.9)/(3*0.05))]

= min[0.67 , 0.67]

= 0.67

Therefore, Theprocess capability index (Cpk) if the long-run process mean is 1 inch is 0.67