Type the equation for each answer in the cell.
1. Analyze a mixed cost using a scattergraph plot and the high-low method. 2. Prepare income statements for a merchandising company using the traditional and contribution formats. ? X - Sign In Safi High-Low Method; Contribution Format Income Statement - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW 8 Calibri -11 A = % D E Paste B I U - I - A Alignment Number Conditional Format as Cell Formatting Table Styles Clipboard Font Styles Cells Editing B3 D E F 1 To aid in planning, Jay Corporation is preparing a contribution format income statement. 3 Budgeted information for Quarter 1 of Year 3: 4 Sales in units 5 Sales price per unit 17,000 48.00 7 After analyzing expenses, the company has determined the following cost patterns. Cost of goods sold 29.00 per unit 9 Sales commissions 9.50% per dollar of sales A A Administrative salaries Rent expense Depreciation expense 12 13 45,000.00 per quarter 27,000.00 per quarter 36,000.00 per quarter A A 15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the High-Low Method; Contribution Format Income Statement - Excel ? x - Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW % Calibri - A = % - A - Alignment Number - 11 B- Font D D D Conditional Format as Cell Formatting Table Styles B IU Cells Paste Clipboard B3 Editing Styles : fic A C D E F 19 Total Shipping Cost $ 67,000.00 94,000.00 89,800.00 92,600.00 Units 12,500 21,000 13,800 20,000 20 17 Year 1 18 Quarter 1 Quarter2 Quarter 3 Quarter 4 22 Year 2 Quarter 1 24 Quarter2 Quarter 3 Quarter 4 72,500.00 80,000.00 84,000.00 100,000.00 13,700 14,000 14,300 22,500 26 28 Use the data to answer the following. 30 1. Using the high-low method, determine a cost formula for shipping expenses. 31 D o s ? - * s ib HOME High-Low Method; Contribution Format Income Statement - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE INSERT Sign In Paste B I U - - Cells Editing A - Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font B3 C D E F Total Shipping Cost Units 33 High level of activity 34 Low level of activity 35 Change in activity 37 Variable cost per unit 39 Compute the fixed cost portion using the high level of activity. 40 Total cost at high level of activity 41 Less: Variable cost element 42 Total fixed cost 43 44 2. Prepare a contribution format income statement for Quarter 1 of Year 3. Jay Corporation Budgeted Contribution Format Income Statement For Year 3, Quarter 1 ? X - Sign In Editing XS S High-Low Method; Contribution Format Income Statement - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW * Calibri -11 -A = % Paste B IU- 2. A Alignment Number Conditional Format as Cell Cells Formatting Table Styles Clipboard Font G Styles B3 * v for C D Jay Corporation Budgeted Contribution Format Income Statement For Year 3, Quarter 1 E 50 Sales 51 Variable expenses: 52 Cost of goods sold 53 Sales commissions 54 Shipping expense 55 Total variable expenses 56 Contribution margin 57 Fixed expenses: 58 Administrative salaries 59 Rent expense 60 Shipping expense 61 Depreciation expense 62 Total fixed expenses 63 Net operating income 64
