1. Identify each of the company s expenses (including cost of goods sold) as either variable fixed...
Fantastic news! We've Found the answer you've been seeking!
Question:
1. Identify each of the company s expenses (including cost of goods sold) as either variable fixed or mixed.
2. Using the high-low method separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.
Transcribed Image Text:
Sales in units Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 4,000 $400,000 240,000 160,000 21,000 34,000 78,000 6,000 15,000 154,000 $ 6,000 August 4,500 $450,000 270,000 180,000 21,000 36,000 84,000 6,000 15,000 162,000 $ 18,000 September 5,000 $500,000 300,000 200,000 21,000 38,000 90,000 6,000 15,000 170,000 $ 30,000 Sales in units Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 4,000 $400,000 240,000 160,000 21,000 34,000 78,000 6,000 15,000 154,000 $ 6,000 August 4,500 $450,000 270,000 180,000 21,000 36,000 84,000 6,000 15,000 162,000 $ 18,000 September 5,000 $500,000 300,000 200,000 21,000 38,000 90,000 6,000 15,000 170,000 $ 30,000
Expert Answer:
Answer rating: 100% (QA)
1 Cost of goods sold Variable Advertising Expense Fixed Ship... View the full answer
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
Students also viewed these accounting questions
-
A Texas rancher wants to fence off his four-sided plot of flat land. He measures the first three sides, shown as A, B, and C in the figure below, where A = 4,45 km and 0=17 " D = ? km D - 0...
-
Using the following purchases journal, identify each of the posting references, indicated by a letter, as representing (1) A posting to a general ledger account, (2) A posting to a subsidiary ledger...
-
Using the following purchases journal, identify each of the posting references, indicated by a letter, as representing (1) A posting to a general ledger account, (2) A posting to a subsidiary ledger...
-
XYZ Co. It is currently trading at $5 per share and has announced a $0.50 per share dividend payable next year. Using historical information, one analyst estimates XYZ Co.'s dividend growth rate is...
-
One should never jump off a moving vehicle (train, car, bus, etc.). Assuming, however, that one does perform such a jump, from a physics standpoint, what would be the best direction to jump in order...
-
Suppose the firm in Problem 3 had 35,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?
-
The accounts and June 30, 2007, balances of Cromwell Company are arranged in no particular order: Requirements 1. Prepare the company's classified balance sheet in account format at June 30, 2007. 2....
-
You can purchase an optical scanner today for $400. The scanner provides benefits worth $60 a year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 20% per...
-
(1 point) Book Problem 9 Consider the curve defined by y = + = from 1 to x = 3. 1626 The length of this curve is L = 1+ ('(x)) dx where f'(x) = Simplify and factor to get L = f (g(x)) dx where g(x) =...
-
Our client, Mathew Banks, was arrested last night by the Phoenix Police Department. The police found Mr. Banks' car pulled over on the side of the highway with him asleep or passed out inside. The...
-
Suppose the conditional probability that a student received a grade A for English, given that the student is female, is 0.15. For simplicity, let us also assume the school has a total of 1,000...
-
How could the problems with the DaimlerChrysler merger have been avoided? Was the problem one of strategy (ov erexpansion), or was it organizational? Why?
-
Consider a divestment strategy. Why is it hard to divest a business? Identify some cases of divestment. What are some of the motivations that led to these divestments?
-
How serious are the environmental concerns arising from the launch and sales of the Tata Nano? To whom are these of most concern? Are the environmental costs outweighed by the improvement in the...
-
What are the lessons for the many firms who have strong competencies as component suppliers but wish to enter a market ender their own brand name? Consider this in a number of different industries...
-
The binary diffusivity of a particular salt in water at room temperature is 3.2 10 4 cm 2 /s. That salt in solid form dissolves at the bottom of a beaker of water (8 cm high), while water flows...
-
Rainbow Salon had the following data for the most recent three months of operations. What is Rainbow's cost equation? May June July of appointments 1,200 1,000 1,400 Hair dresser salaries $30,000...
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
A low pass filter is to be designed with the following parameters: passband edge frequency (wp) = 1kHz stopband edge frequency (ws) = 4kHz Maximum passband attenuation (Amax) = 1.0 dB Minimum...
-
The following items were selected from among the transactions completed by Sounds and Sight Stores during the current year: Apr. 7. Borrowed $36,000 from First Financial Company, issuing a 60-day, 8%...
-
Artesian Springs Water Testing Service was established on September 16, 2008. Artesian uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants...
-
This activity will require two teams to retrieve cash flow statement information from the Internet. One team is to obtain the most recent years statement of cash flows for Johnson & Johnson, and the...
-
Extracts from the ledgers of Hall Ltd have provided the following information for 2009 and 2010. Sales revenue 2009 Sales revenue 2010 Purchases 2009 Purchases 2010 Expenses 2009 Expenses 2010...
-
(a) Explain why there are always problems at the year-end in the assessment of the costs associated with electricity, gas, and telephone. (b) Using the information below, prepare the appropriate...
-
Arthur Moment set up a table-making business, Forlegco, on 1 July 2010. He had 10,000 available to invest, which is the amount he estimated was required for setting up costs. In the first month of...
Study smarter with the SolutionInn App