Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below. July August 10,000 Sales in units 11,000 Sales
Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below. July August 10,000 Sales in units 11,000 Sales $ 165,000 $ 150,000 Cost of goods sold 72,600 66,000 Gross margin 92,400 84,000 Selling and administrative expenses Rent 12,000 $ 12,000 Sales commissions 13,200 $ 12,000 Maintenance expenses $ 13,500 $ 13,000 Clerical expense $ 16,000 $ 15,000 Total selling and administrative expenses $ 54,700 $ 52,000 Net operating income. $ 37,700 $ 32,000 All of the company's costs are either fixed, variable, or a mixture of the two (ie, mixed). Assume that the relevant range includes all of the activity levels mentioned in this problem Which of the selling and administrative expenses of the company is variable? Select one A. Sales Commissions OB Maintenance Expense OC Clerical Expense OD. Rent $ $
Step by Step Solution
★★★★★
3.48 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
1 Answer is A Sales Commission Sales in Units Sales Cost of Goods Sold Gross Margin Selling ...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