Compania Maritima S.A. The companys income statements for the next three months follow:

1.identify each of the companies expenses

2. using the high-low method deprecate each mixed expense into variables and fixed elements. state the cost formula for each mixed expense

3. redo the companys income statement at the 7,000 unit level of activity using the contribution format

How to do question 5-14, #s 1-3

Managerial Acounting 2nd Edition

the horizontal axis, and utilities cost should the horizontal axis, and unilities cost should be placed on the veric as) ta straight line to otted points by visual inspection and estimate a cost formula for utilities. ) Fit a straight line to PROBLEM 5-14 LOI, LO3, LO4) Cost Behavior; High-Low Analysis; Contribution Format Income Statement CHECK FIGURE Compania Maritima S.A., of Santiago de Chile, is a merchandising firm that supplies a variety of American products to the Chilean market. The company's income statements for the three most recent months follow: (2) Shipping: P9,000 per month plus P9.00 per COMPANIA MARITIMA S.A Income Statements For the Three Months Ending June 30 April May June Sales in units . Sales revenue. Less cost of goods sold.... Gross margin. Less operating expenses: 6,500 7.400 7.000 P260,000 78.000 182,000 P296,000 88.800 207,200 P280,000 84.000 196,000 5,000 5,000 75,600 34.400 4,000 2,500 5,000 72,000 32,800 4,000 2,500 116,300 P 79,700 Salaries and commissions...30,800 4.000 2,500 Insurance expense Total operating expenses 109.800 Net operating income.P 72.200 21,500 P 85,700 (Note: Compania Maritima S.A.'s Chilean-formatted income statement has been recast in the format com mon in the United States. The Chilean dollar is denoted by P) st of goods sold) as either a variable, fixed, or Identify each of the mixed cost. 2. Using the high-low method, separate each mixed expense into vriable and fixed elements. State the 3. Redo cost formula for each mixed expense. the company's income statement at the 7.000 unit level of activity using the contribution format PROBLEM 5-I5 Identifying Cost Behavior Patterns (LOI) hat might he found in a company's cost structure are