Assume a merchandising company provided the following income statements:

	May				June				July
Sales in units		4,800				5,000				5,500
Sales	$	168,000			$	175,000			$	192,500
Cost of goods sold		86,400				90,000				99,000
Gross margin		81,600				85,000				93,500
Selling and administrative expenses:
Advertising		17,000				17,000				17,000
Shipping		16,800				17,500				19,250
Salaries and commissions		29,600				30,000				31,000
Total selling and administrative expenses		63,400				64,500				67,250
Net operating income	$	18,200			$	20,500			$	26,250

Which of the expenses shown in the income statements is behaving like a mixed cost?

Multiple Choice

• Advertising

• Salaries and commissions

• Cost of goods sold

• Shipping