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please complete questions 1-3. Thank you! Chapter b Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 September August July 4,500
please complete questions 1-3. Thank you!
Chapter b Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 September August July 4,500 5,000 4,000 Sales in units $500,000 $450,000 270,000 $400,000 240,000 300,000 Sales. Cost of goods sold. Gross margin Selling and administrative expenses: 200,000 180,000 160,000 21,000 21,000 21,000 Advertising expense 36,000 38,000 34,000 78,000 Shipping expense 84,000 90,000 Salaries and commissions 6,000 Insurance expense... 6,000 6,000 Depreciation expense. 15,000 15,000 154,000 $ 6,000 15,000 Total selling and administrative expenses 162,000 170,000 Net operating income $30,000 $ 18,000 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 variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y= a + bX. 3 Redo the company's income statement at the 5,000-unit level of activity using the contribution format PRORIEM 64-8 HimkStep by Step Solution
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