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Haram Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume.
Haram Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $182.10 per unit. Year 1 Year 2 Year 3 Soles volume (units) 120,000 160,000 220,000 Sales $2,800,000 $3,400,000 $4,625,000 Expenses: Cost of Goods Sold (960,000) (1,280,000) (1,760,000) Salaries (520,000) (680,000) (920,000) Rent ( 50,000) ( 50,000) ( 50,000) Commissions ( 70,560) ( 94,080) (129,360) Administrative (504,800) (656,400) (883,800) Net Operating Income $694,640 $639,520 $881,840 Required A: Compute the COST/UNIT for Cost of Goods Sold, Salaries, Rent, Commissions and Administrative Expenses for Years 1-3 (ROUND TO NEAREST HOUNDREDTH DECIMAL). Cost of Goods Sold Salaries Rent Commissions Year 1 Year 2 Year 3 Administrative Required B: Based on your answer provided in Part A, explain briefly identify and explain why each cost is a Variable, Fixed or Mixed Cost. Provide support for your answer. Cost of Sales: Cost Type: Supporting Explanation:
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