1. In November, Mazoon company., a merchandising company, had sales of $294,000, selling expenses of $27,000, and administrative expenses of $35,000. The cost of merchandise purchased during the month was $211,000. The beginning balance in the merchandise inventory account was $38,000 and the ending balance was $34,000.

Required:

Prepare a traditional format income statement for November.

2. Majan company shared the following data for a number of recent months:

Products Return

April 24 $2,972

May 23 $2,928

June 27 $3,141

July 39 $3,752

August 36 $3,569

September 35 $3,551

October 26 $3,071

November 37 $3,636

Required: Estimate the variable cost per product return and the fixed cost per month using high-low method