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mal costs M 1. 2 1 20-23 Deco-Lampz. Ltd. is a small company that sells decorative lamps to decorators and com company's income statements for
mal costs M 1. 2 1 20-23 Deco-Lampz. Ltd. is a small company that sells decorative lamps to decorators and com company's income statements for the last three months are shown below: August Sales in units 200 Sales revenue $30,000 Cost of goods sold 16,000 Gross profit 14,000 Operating expenses Salaries and wages expense 5,900 Depreciation expenses 580 Shipping expense 1,400 Office expense 120 Total operating expenses 8,000 Income from operation $ 6,000 September 300 $45,000 24,000 21,000 October 251 599 20.30 18.200 6.170 6,350 580 2,100 170 9,200 $11,800 1820 150 8,720 $ 9,480 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 costite formation determined above, prepare a CVP income statement up to income from operations for November (Show expense items individually.) 11 ronte per 50-ml bottle
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