Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please and thank you! i have no idea what to do here my work Morrisey& Brown, Ltd., of Sydney is a merchandising company that is

please and thank you! i have no idea what to do here image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
my work 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 7,000 7,500 8,000 Sales $787,500 472,500 315,000 $735,000 441,000 $840,000 504,000 336,000 Cost of goods sold. Gross marqin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total sel1ing and administrative expenses 294,000 36,400 36,400 79,400 127,200 36,400 83,800 134,400 75,000 120,000 8,400 22,800 8,400 8,400 22,800 285, 800 $ 50,200 22,800 262,600 274,200 S 40,800 Net operating income s 31,400 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into varlable and fixed elements. Express the variable and fixed portions ofeach mixed expense in the form Yra bX 3. Redo the company's income statement at the 8,000-unit level of activity using the contribution format Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Prev 1 of 1 Next esc G Search or type URL $ & 1 2 3 4 5 6 7 W R T Y U Prev 1 of 1 Next esc G Search or type URL 1 2 3 5 6 7 LO Save & Exit Help Subm 5A-7 i Saved Check my work from the company's income statements, classify each of its expenses s sold) as either variable, fixed, or mixed. ethod, separate each mixed expense into variable and fixed elements. d fixed portions of each mixed expense in the form Y-a + bX. income statement at the 8,000-unit level of activity using the contribution tion by entering your answers in the tabs below. d 2 Required 3 thod, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions o orm Y a + bX. (Round the Variable cost per unit to 1 decimal place.) s Variable Cost Fixed Cost Formula per unit X per unit Ya X esc G Search or type URL # Help Save & Exit Submit 4-7 G Saved Check my work Redo the company's income statement at the 8,000-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses: Fixed expenses Required 2 Reguired 3 Prev 1 of 1 Next G Search or type URL % 2

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_2

Step: 3

blur-text-image_3

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

Data Analytics For Auditing Using ACL

Authors: Alvin A. Arens

4th Edition

0912503629, 978-0912503622

More Books

Students also viewed these Accounting questions

Question

What is an expanding opcode?

Answered: 1 week ago