Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show work through excel thank you? Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market
Please show work through excel thank you?
Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses in British pounds) for the last three months are given below: Arnall Ltd. Comparative Income Statements For the Three Months Ended June 30 April 1,300 Sales in units May 4,600 June 5,700 Sales revenue Cost of goods sold 247,000 115,700 874,000 409,400 1,083,000 507,300 Gross margin 131,300 464,600 575,700 Selling and administrative expenses: Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense 41,100 60,000 82,500 6,600 37,400 103,800 60,000 231,000 6,600 37,400 124,700 60,000 280,500 6,600 37,400 Total selling and administrative expenses 227,600 438,800 509,200 Net operating income (loss) (96,300) 25,800 66,500 (Note: Arnall Ltd.'s income statement has been recast in the functional format common in the United States. The British currency is the pound, denoted by .) Required: 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed. Classification Expenses Cost of goods sold Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense 2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Enter mixed expenses in the order of company expenses provided under question.) Variable Cost Fixed Cost Formula X per unit per unit Y = Y= X 3. Redo the company's income statement at the 5,700-unit level of activity using the contribution format. Arnall Ltd. Income Statement For the Month Ended June 30 Variable expenses: Total variable expenses Fixed expenses: Total fixed expensesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started