Question
Refer to the table below. There are 5 expenses (costs) that have oddity about them which doesn't make sense. What is it about the individual
Refer to the table below.
There are 5 expenses (costs) that have oddity about them which doesn't make sense. What is it about the individual number that is not "right"?
SElECTED HISTORICAl INCOME STATEMENT AND RELATED MEASURES
YEAR 1984 1985 1986 1987 1988
Net Variable Revenues*2,885,969 3,828,255 4,086,667 3,940,799 4,298,748
Semi-Fixed (S-F) Expenses (costs):
Salaries 613,006 968,789 1,211,464 1,289,758 1,360,489
Vacation. 600 26,705 19,468 19,059 18,268
Advertising 210,226 288,347 281,219 309,608 371,314
Supplies/Tools. 31,473 46,141 75,468 65,935 81,252
Freight 5,719 5,987 6,528 5,731 4,663
Vehicle 22,913 23,718 23,664 20,370 19,483
Demonstrators 10,465 4,969 1,513 4,192 707
Floor-Planning 278,531 301,113 276,201 156,129 305,044
Total S-F costs. 1,172,933 1,665,769 1,892,499 1,870,782 2,161,220
Fixed Cost:
Total Fixed cost 1,449,208 2,050,172 2,290,867 2,164,362 2,653,620
Operating Profit** 263,828 112,314 -96,699 -94,345 -516,092
New Retail cars Sold 1,798 1,977 1,674 1,450 1,897
Notes:
* Revenues less variable costs equal Net Variable Revenues (or Contribution Margin, in aggregate).
** Net Variable Revenue less Total S-F Expenses less Total Fixed Expenses equals Operating
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