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Incred. 2. Change the e cost behaviour bare CV Pincome at. (LO 1,5) AN $60,000 p frastructions (a) Calcula (b) Calcula manager in a service
Incred. 2. Change the e cost behaviour bare CV Pincome at. (LO 1,5) AN $60,000 p frastructions (a) Calcula (b) Calcula manager in a service organization handle material costs? P20-28 Deco-Lampz Ltd. is a small company that sells decorative lamps to decorators and consumers. The company's income statements for the last three months are shown below: September August October 260 Sales in units 300 200 $39,000 Sales revenue $30,000 $45,000 20,800 Cost of goods sold 24,000 16,000 18,200 Gross profit 14,000 21,000 Operating expenses Salaries and wages expense 5,900 6,350 6,170 Depreciation expenses 580 580 580 Shipping expense 1,400 2,100 1,820 Office expense 120 170 150 Total operating expenses 8,000 9,200 8,720 Income from operation $ 6,000 $11,800 $ 9,480 course P20-5B promotio $195,000 increased Variable the effe Instruc (a) Ca ar (6) C Instructions (a) Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. (b) Calculate the cost per unit for each of the variable expenses. (c) Using the high-low method, determine the variable cost per unit and the fixed cost component for each of the mixed costs. (d) Management has projected that the sales volume in November will increase to 400 lamps. Using the cost in- formation determined above, prepare a CVP income statement up to income from operations for November. (Show expense items individually.) (c) TAY Pincome and calculate P20-3B Clearwater Corporation produces LOKAL, a fruit drink. The beverage is sold for 50 cents per 500-ml bottle to distribute 1 1m
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