Any semivariable cost is composed of a $50\%$ variable$-$cost component and a $50\%$ fixed$-$cost component. $($Remember$,$ in actuality, these percentages will differ depending on the source of the cost.$)$

$$ All of the company$$s tax expense consists of sales and income taxes, and thus, varies proportionately with European Satellite$$s sales.

European Satellite Corporation

Income Statement

for the Year Ending June $30$

Net sales $$11,525,837$

Less: Variable operating costs

Fixed operating costs