Question
Prater Company has provided the following data This Year Last Year Units Sold 300,000 250,000 Sales Revenue $1,300,000 $1,050,000 Less: Cost of Goods Sold 910,000
Prater Company has provided the following data
This Year
Last Year
Units Sold
300,000
250,000
Sales Revenue
$1,300,000
$1,050,000
Less: Cost of Goods Sold
910,000
735,000
Gross Margin
390,000
315,000
Less: Operating Expenses
272,000
260,000
Operating Income
$118,000
$55,000
What is the best estimate of the company's variable operating expense per unit?
What is the best estimate of the company's total fixed operating expense per year?
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
