Mickey Mouse Outlet Store Limited Income Statement

Year ended December 31, 2020

Units	2020 50000	2019 40000	2018 25000
Sales	$100,000	$80000	$50000
Cost of goods sold	40,000	32,000	20000
Gross margin	60,000	48,000	30000
Advertising expense	6000	6000	6000
Depreciation expense	8000	8000	8000
Office supplies expense	2500	2000	1250
Rent expense	15000	15000	15000
Utilities expense	15000 46500	13000 44000	10000 40250
Net income	$13500	$4000	$(10250)

Required:

ALL CALCULATIONS MUST BE SHOWN FOR THE YEAR ENDED 2020

1. Identify the costs as fixed, variable or mixed.

2. Separate any mixed costs into its components using the high/low method.

3. Prepare a schedule that shows the per unit and total variable cost and the total fixed costs for 2020.