Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Classify the indicated costs as being fixed, semivariable, or variable in nature. Net sales $8,741,685 Cost of goods sold: Direct materials 2,622,506 Variable Cost Direct
Classify the indicated costs as being fixed, semivariable, or variable in nature.
Net sales | $8,741,685 | |
Cost of goods sold: | ||
Direct materials | 2,622,506 | Variable Cost |
Direct labor | 2,098,004 | Variable Cost |
Overhead expenses: | ||
Depreciation on manufacturing equipment | 437,084 | Fixed Cost |
Electric utility expense | 262,251 | Semivariable Cost |
Total cost of goods sold | 5,419,845 | |
Gross profit | 3,321,840 | |
Operating expenses: | ||
Sales commission expense | 174,834 | Variable Cost |
Depreciation on buildings and property | 874,169 | Fixed Cost |
Total operating expenses | 1,049,003 | |
Earnings before interest and taxes (EBIT) | 2,272,837 | |
Interest expense | 874,169 | Fixed Cost |
Earnings before taxes (EBT) | 1,398,668 | |
Taxes (40%) | 559,467 | Variable Cost |
Net income | $839,201 | |
Preferred stock dividends | 139,867 | Fixed Cost |
Earnings available to common shareholders | $699,334 |
Income Statement for the Year Ending December 31 | |
---|---|
Net sales | $8,741,685 |
Less: Variable operating costs | ? |
Fixed operating costs | ? |
Total operating costs | ? |
Earnings before interest and taxes (EBIT) | 2,272,837 |
Less: Fixed capital costs | ? |
Earnings before taxes (EBT) | 1,398,668 |
Less: Income taxes (Variable, 40%) | ? |
Earnings after taxes (EAT) | $839,201 |
Less: Fixed capital costs (preferred stock dividends) | ? |
Earnings available to common shareholders | ? |
Earnings per share (EPS) 100,000 shares | ? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started