Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

August July 4,000 $ 400,000 240,000 160,000 4,500 $ 450,000 270,000 180,000 September 5,000 $ 500,000 300,000 200,000 Sales in units Sales Cost of goods

image text in transcribed

image text in transcribed

August July 4,000 $ 400,000 240,000 160,000 4,500 $ 450,000 270,000 180,000 September 5,000 $ 500,000 300,000 200,000 Sales in units 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 21,000 34,000 78,000 6,000 15,000 154,000 $ 6,000 21,000 36,000 84,000 6,000 15,000 162,000 $ 18,000 21,000 38,000 90,000 6,000 15,000 170,000 $ 30,000 Required: 1. By analyzing the data from the company's income statements, classify each of its 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. Express the variable and fixed portions of each mixed expense in the form Y = a +bX. 3. Redo the company's income statement at the 5,000-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. Fixed Cost Formula Variable Cost o per unit $ $ 0 $ Salaries and commissions Shipping expense ox X per unit Y = + Required 1 Required 2 Required 3 Redo the company's income statement at the 5,000-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses: 0 0 Fixed expenses: 0 $ 0 Required 2 Required 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Louwers, Timothy Louwers

5th Edition

0078025443, 978-0078025440

More Books

Students also viewed these Accounting questions

Question

Summarize the reactive strategy of your organization.

Answered: 1 week ago