Flip or Flop is a retail shop selling a wide variety of sandals and beach footwear. In 2019, they had gross revenue from sales totaling $93,200. Their operating expenses for this same period were $34,000. If their Cost of Goods Sold (COGS) was 21% of gross revenue, what was their net operating income for the year?
EB4. Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs.
A. Wood used to produce desks ($125.00 per desk)
B. Production labor used to produce desks ($15 per hour)
C. Production supervisor salary ($45,000 per year)
D. Depreciation on factory equipment ($60,000 per year)
E. Selling and administrative expenses ($45,000 per year)
F. Rent on corporate office ($44,000 per year)
G. Nails, glue, and other materials required to produce desks (varies per desk)
H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)