Year 1 Year 2 Year 3

Cost of Goods Sold 14 14 14

Salaries 8.67 8.50 8.36

Rent .83 .63 .45

Commissions 1.18 1.18 1.18

Administrative 8.41 8.21 8.03

Required B: Based on your answer provided in Part A, explain briefly identify and explain why each cost is a Variable, Fixed or Mixed Cost. Provide support for your answer.

Cost of Sales:

Cost Type:

Supporting Explanation:

Salaries:

Cost Type:

Supporting Explanation:

Rent:

Cost Type:

Supporting Explanation:

Commissions:

Cost Type:

Supporting Explanation:

Administrative:

Cost Type:

Supporting Explanation:

2 Sales Problem 1 Haram Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $182.10 per unit Year 1 Year Year 3 Sales volume (units) 60,000 80,000 110,000 $2,100,000 $2,800,000 $3,850, 000 Expenses: Cost of Goods Sold (840,000) (1,120,000) (1,540,000) Salaries (520,000) (680,000) (920,000) Rent (50,000) (50,000) (50,000) Commissions ( 70,560) ( 94,080) (129,860) Administrative (504,800) (656,400) (883.800) Net Operating Income $164,640 $199,520 $326,340 Required A: Compute the Cost/Unit for Cost of Goods Sold, Salaries, Rent, Commissions and Administrative Expenses for Years 1-3. Year 1 Year Year 3 Cost of Goods Sold Salaries 2 Rent Commissions Administrative Required B: Based on your answer provided in Part A, explain briefly identify and explain why each cost is a Variable, Fixed or Mixed Cost. Provide support for your answer. Cost of Sales: Cost Type: Previous Next Back Short Problem 1 Required B: Based on your answer provided in Part A, explain briefly identify and explain why each cost is a Variable, Fixed or Mixed Cost. Provide support for your answer. Cost of Sales: Cost Type: Supporting Explanation: Salaries: Cost Type: Supporting Explanation: Rent: Cost Type: Supporting Explanation: Commissions: Cost Type: Supporting Explanation