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Please calculate using the 6200 unit level. the variable and fixed costs Thank you Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm
Please calculate using the 6200 unit level. the variable and fixed costs
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Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm that is the sole distributor of a product popularity among Australian consumers. The company's income statements for the three most recent monti ook 6, 200 Quarter Quarter 4 5,600 A$620,000 A $562, 090 372,000 336, cee 248,999 MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Quarter 1 Quarter 2 Sales in units 5,500 5,000 Sales revenue A$550,000 A$500,000 Less: Cost of goods sold 330,000 300,000 Gross margin 220,000 200,000 Less: Operating expenses: Advertising expense 22,000 22,000 Shipping expense 38,000 40,000 Salaries and commissions 84, oce 80, oee Insurance expense 7,000 7,000 Depreciation expense 16,000 16,000 Total operating expenses 167,000 165,000 Net income A$ 53,080 A$ 35,000 int 22,000 44,800 94 400 7,080 16,000 184,200 A$ 63, 800 39,800 90,800 7,080 16,089 175,600 A$ 48,400 (Note: Morrisey & Brown. Ltd. s Australian-formatted income statement has been recast into the format com Australian dollar is denoted by AS.) 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. Variable Cost AS 18 per unit Fixed Cost A$ (42,000): A$ 44.800 Shipping expense Salaries and commissions expense A$ 8 per unit A$ per unit A$Step by Step Solution
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