High-Low Method; Contribution Format Income Statement - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME INSERT Sign In Calibri 11 A A A M Editing Cells Paste BIU 96 Alignment Number Conditional Format as Cell Formatting Table Styles Styles > Clipboard Font F10 D E A B 1 To aid in planning, Jay Corporation is preparing a contribution format income statement, 2 3 Budgeted information for Quarter of Year 3: 4 Sales in units 17,000 5 Sales price per unit $ 48.00 6 8 9 7 After analyzing expenses, the company has determined the following cost patterns, Cost of goods sold 29.00 per unit Sales commissions 9.50% per dollar of sales 10 11 12 Administrative salaries Rent expense 13 Depreciation expense S $ 45,000.00 per quarter 27,000.00 per quarter 36,000.00 per quarter 14 15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the last eight quarters are: 16 17 Year 1 Total Shipping Cost Units 18 Quarter 1 $ 67,000.00 12,500 19 Quarter2 S 94,000.00 21,000 20 Quarter 3 89,800.00 13,800 21 Quarter 4 $ 92,600,00 20,000 22 Year 2 Cuarter 1 13700 22 500 00 on Assignments i Saved X Calibri 11 M Editing Paste BIU AA 96 Alignment Number Conditional Format as Cell Formatting" Table Styles Styles BE Cells Clipboard Font E16 V B C D F 22 Year 2 23 Quarter 1 24 Quarter2 25 Quarter 3 26 Quarter 4 27 28 Use the data to answer the following. S S S S 72,500.00 80,000.00 84,000.00 100,000.00 13,700 14,000 14,300 22,500 29 32 30 1. Using the high-low method, determine a cost formula for shipping expenses. 31 Total Shipping Cost Units 33 High level of activity 34 Low level of activity 35 Change in activity 36 37 Variable cost 38 39 Compute the fixed cost portion using the high level of activity 40 Total cost at high level of activity 41 Less: Variable cost element 42 Total fixed cost per unit 43 44 2. Prepare a contribution format income statement for Quarter I of Year 3. 45 Sheet1 READY 100% Attempt(s) bh FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri - 11 AA M M Paste BIU- Cells 96 Alignment Number Conditional Format as Cell Formatting Table Styles Styles - Editing