Excel Project+ 2+F17 (Compatibility Model es Mailings Review View ACC 2362 Managerial Accounting: Excel Project #2-Chapters 6 & 7-Cost Behavior, High-Low Method, Contribution Margin Income Statement, and Break-Even Analysis riser& Brown is a merchandising company that is the sole istrutor of a pract that smeasing in popularity The company's income statement for the three most recent months is listed below. Morrisey and Brown Income Statement For the Three Honths Ending September $500,000 325,000 $400,000 Cost of Goods Sold Gross Selling and Administrative Expenses: Margin 500 Salaries and Commissions Insurance Expense 6,000 15,000 Total Selling&Administrative Expenses Operating Income 1. Identify each of the company's individual expenses (both product and period) as either a variable, foxed or mixed cost. For the FC list the total fixed costs each month, for each fixed cost. For VC list the variable cost per 2. Using the high-low method, separate each of the individual mixed cost into the variable rate and foxed cost 3. Mocrisey and Brown expect to produce and sell 6,000 units in October. Prepare an absorption income statement 4, Prepare a Contrbution Margin Income Statement based on October sales of 6,0 units. Do not combine 5. Calculate the contribution margin per unit and the variable cost ratio. unit for each month, for each variable cost. For MC ist the average cost per unit for each mixed cost per monch. elements. State the cost formula for each individual mixed costs for October. Do not combine expenses but show each expense separately in the appropriate category. expenses but show each expense separately in the appropriate category 6. How many units would need to be sold to generate $75,000 in target income? (Round your answer to the nearest 7. Give one example of how Morrisey and Brown could increase projected operating income without increasing 8. Macrissy,and Brown are considering unit using the Excel Round Up function.) sales revenue. a mutimedia advertising campaign that should increase sales by $25,000 per and will be considered a fixed cost. How w month. The ad campaign will cost and addtional $7,500 per month the ad campaign affect product cost? How wil the increase in fixed costs affect the break-even point? Explain