Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need the answer in word document please in simple English and clear steps and Cost Concepts (1 mark) 1. Cosgrove, Inc., is a wholesaler

i need the answer in word document please in simple English and clear steps

image text in transcribed
and Cost Concepts (1 mark) 1. Cosgrove, Inc., is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below: Cosgrove Traditional F ome Statement or the Three Months Ended June 30 May June Sales in units. 3,600 3.750 4,500 Sales revenue $420,000 $525,000 $630,000 Cost of goods sold 168 000 210.000 252 000 Gross margin. ...... 252 006 315,000 378,000 Selling and administrative expenses Shipping expense. 44,000 50.000 56,000 Advertising expense..... 70.000 70,000 Salaries and commissions... 107 600 125.000 143,000 Insurance expense ....... 9.000 9,000 9.000 Depreciation expense 142.000 42.000 42.000 Total selling and administrative expens 272 000 296.000 320.000 Net operating income (loss) 20 000) $ 19.000 $ 58.000 Required: a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into variable and fixed elements. (Use unit sales as the activity measure.) State the cost formula for each mixed expense b. Compute the company's contribution margin for May

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

8th Edition

1259116832, 9781259116834

More Books

Students also viewed these Accounting questions

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago