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Comparative income statements for Tudor Retailing Company for the last two months are presented below: September October Sales in units 5,000 7,000 Sales revenue $100,000
Comparative income statements for Tudor Retailing Company for the last two months are presented below:
September | October | |
Sales in units | 5,000 | 7,000 |
Sales revenue | $100,000 | $140,000 |
Cost of goods sold | 40,000 | 56,000 |
Gross margin | 60,000 | 84,000 |
Selling and administrative expenses: | ||
Shipping expense | 7,500 | 10,500 |
Clerical expense | 10,000 | 12,000 |
Maintenance expense | 17,000 | 17,000 |
Total selling and administrative expense | 34,500 | 39,500 |
Net operating income | $25,500 | $44,500 |
Which of the following classifications best describes the behavior of shipping expense?
Mixed
Variable
Fixed
none of these
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