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Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian
Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: Morrisey & Brown, Ltd Income Statements For the Three Months Ended September 30 July August September Sales in units 4,000 4.500 5,000 $450,000 $500,000 Sales 00.000 Cost of goods sold 270,000 300,000 240.000 Gross margin 160.000 180,000 00,000 Selling and administrative expenses: 21,000 21,000 Advertising expense 21,000 Shipping expense 34,000 36.000 38,000 84,000 Salaries and commissions 78,000 0,000 6,000 6,000 6,000 nsurance expense 15,000 Depreciation expense 15,000 15,000 154,000 Total selling and administrative expenses 162,000 170,000 6,000 18,000 30,000 Net operating income Required 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions nsurance expense Depreciation expense
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