Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

King Comics is a wholesaler of popular comic books. The companys records indicate the following financial results: Units Sold Current Year 50,000 Previous Year 40,000

King Comics is a wholesaler of popular comic books. The companys records indicate the following financial results:

Units Sold Current Year 50,000 Previous Year 40,000
Sales revenue $250,000 $200,000
Cost of goods sold 175,500 140,000
Gross margin 74,500 60,000
Operating expenses 23,500 20,000
Net operating income $51,000 $40,000

Using the high-low method, what is the companys estimated variable and fixed component of operating expenses? (Round answer to 2 decimal places, e.g. 52.75.)

Variable component of operating expenses $

Fixed component of operating expenses $

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 Study Guide

Authors: Jerry J. Weygandt ,Donald E. Kieso ,Paul D. Kimmel

4th Edition

0471205117, 978-0471205111

More Books

Students also viewed these Accounting questions

Question

4. Identify cultural variations in communication style.

Answered: 1 week ago