Question 2-18, page 58 in Managerial Accounting for Managers, 3rd Edition. I am unsure how to solve this, and how to find the cost formula as in part 2.

1. Identify each of the company's expenses (including COGS) as either variable, fixed, or mixed.

2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.

3. Redo the company's income statement at the 4,500 unit level of activity using the contribution format.

time moved in beating an import, and the du or ingers pressed and down the amnioenance cost For ing purposesthe company wants to the the factory overhead cost of opens at the high level of activity Jawary Best consists of indirect materials and rent Think about the behavior of February 120 pesos she and fixed costs. igh-love method, est level of What Total One head costs would you expect the company to incur at an operating cel PROBLEM 2 Cost BehaviorHigh-Low Method Contribution format Income Statement .0 24, Lo 2-5) gaining rapid market Merchandising company, is the exclusive distributor of a product that is British pounds acceptance. The company's revenues and expense in for the Using the high-low nettedestimate a cool beam Frankel Ltd. Comparative income statements For the Three Months Ended June 30 2. Prepare a scattergraph by leaking in peace line through the two data points that ITeSpot line intersects the Y-axis 3 Comment on the accuracy of your highs analysis estimated the total fixed costs to be $37.82 per ingo. How would the straight in straight line that minimizes the sum of the Cost of goods sold 282,000 378,000 Sailing and administrative expenses Shipping open Advertising exper 10,000 Insurance expense Depreciation expense 42,000 Total selling and administrative experates 320,000 Net operating E 120,000) Note: 's income statement been recast in functional format Frank and Lathas the common in the United States. The British currency is the pounddonated by t) PROBLEM 2-20 Ethics and the Manager L02 The top management of General ElectronicsInc. an eye on the companyis desired growth in em em office) sets target profits at the beginning of a has stated her policy as follows: "I won't insult advice, that the division vice presidents are no for the year. In November, Stan Richart, the Nike logies Division. very difficult. Among other actions, he is the beginning of the new year. On Decem clerk had ordered $350,000 of cellular te weren't really needed by the assembly be accounting practice, the General Election are to be recorded as an expense when asked that the order be canceled, but the been delivered and the supplier would MrRichart asked the accounting depen of the delivery until the bill is paid in ntify each of the company's expenses (including cost of goods sold) as either variable, fixed, 2. Using the high-low methods, separate each mixed expense into variable State the sust formula for each mixed expense. 3. Redo the company's income statement at the 4 500-unit level of actis PROBLEM 2-19 High-Low and Scatter aph Analysis IL Scott Wire Company heats copper ingots to very large heat coil. The heated inputs are then run the into wire. Due to the long heart-up time, the the temperatt the waiting temperature between in Are MrRichert's actions ethical Do the general management phild e or discourage ethical behave