Question
Use Only the 2017 and 2018 financial data below to estimate the FIXED COST to Variable cost ratio for Selling and Administrative Expenses in 2018.
Use Only the 2017 and 2018 financial data below to estimate the FIXED COST to Variable cost ratio for Selling and Administrative Expenses in 2018. Round to the third decimal place. Use the Hi-Low Method but assume the estimated variable SGA cost is $0.09 per sales dollar.
| Year | 2016 | 2017 | 2018 |
| Total Revenue | 5,354,000 | 6,423,000 | 7,424,000 |
| Cost of Revenue | 2,460,000 | 2,136,000 | 2,265,000 |
| Gross Profit | 2,894,000 | 4,287,000 | 5,159,000 |
| Selling General and Administrative | 410,000 | 395,000 | 431,000 |
| Total Operating Expenses | 3,017,000 | 2,948,000 | 3,184,000 |
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Management And Organisational Behaviour
Authors: Laurie Mullins
7th Edition
9780273688761
