Question
Use Only the 2017 and 2018 financial data below to estimate the FIXED COST to Variable cost ratio for of goods sold IN 2017. Round
Use Only the 2017 and 2018 financial data below to estimate the FIXED COST to Variable cost ratio for of goods sold IN 2017. Round to the NEAR whole penny. Use the Hi-Low Method but assume the estimated variable cost is $0.25 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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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
8th edition
978-1259569197
