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Analyze the income statement of JKL Industries for the fiscal year ending December 31, 2023, focusing on its revenue mix and cost behavior. JKL Industries
Analyze the income statement of JKL Industries for the fiscal year ending December 31, 2023, focusing on its revenue mix and cost behavior.
JKL Industries Income Statement | Year Ended December 31, 2023 |
---|---|
Revenue | |
Domestic Sales | $600,000 |
International Sales | $400,000 |
Service Revenue | $100,000 |
Total Revenue | $1,100,000 |
Expenses | |
Cost of Goods Sold | $450,000 |
Selling and Administrative Expenses | $300,000 |
Variable Costs | $150,000 |
Fixed Costs | $200,000 |
Depreciation Expense | $40,000 |
Interest Expense | $30,000 |
Income Tax Expense | $70,000 |
Total Expenses | $1,240,000 |
Net Income | -$140,000 |
Questions:
- Calculate the revenue mix percentage for domestic, international, and service revenues, and discuss its importance in understanding the company's revenue sources.
- Analyze the behavior of variable and fixed costs and explain how they impact the company's profitability and cost management strategies.
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