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2-a. Using the high-low method, separate each mixed expense into variable and fixed eleme Advertising expense Shipping expense Salaries and commissions expense ..... Advertising expense A$ AS AS Variable Cost per unit per unit per unit Y= A$ Y= A$ Y= A$ A$ A$ A$ 2-b. Using the high-low method, state the cost formula for each mixed expense. EMPRE MARTED Fixed Cost 22,600+ A$ +AS + A$ 22,600 XXX

2-a. Using the high-low method, separate each mixed expense into variable and fixed eleme Advertising expense Shipping expense Salaries and commissions expense ..... Advertising expense A$ AS AS Variable Cost per unit per unit per unit Y= A$ Y= A$ Y= A$ A$ A$ A$ 2-b. Using the high-low method, state the cost formula for each mixed expense. EMPRE MARTED Fixed Cost 22,600+ A$ +AS + A$ 22,600 XXX

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Smith & Chief Ltd. of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the four most recent quarters follow. SMITH & CHIEF LTD. Income Statements For the Four Quarters Ending December 31 Quarter 1 Quarter 2 6,100 5.600 A$610,000 A$560,080 A$692,000 366,000 336,000 415,280 244,800 224,800 276,800 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Advertising expense Shipping expense Salaries and commissions expense (Note: Smith & Chief Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) S Advertising expense 22,600 22,600 22,600 40,408 42.400 42,080 87,600 81,200 97,840 94,288 7,500 7,600 7,600 7,600 16,600 16,600 16,600 16,600 174,800 170,480 191,520 183,160 A$ 69,200 A$ 53,600 A$ 85,280 A$ 68,840 AS AS 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. 1994 Vartable Cost Quarter 3 6,920 C MEAS Y=AS Y= A$ 22,600 47,680 per unit per unit per unit Quarter 4 6,300 A$630,000 378,000 252,000 AS AS 45 Caleanke 22,600 AS AS +AS 2-b. Using the high-low method, state the cost formula for each mixed expense. Fixed Cost 22,600 XXX
Transcribed Image Text:Smith & Chief Ltd. of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the four most recent quarters follow. SMITH & CHIEF LTD. Income Statements For the Four Quarters Ending December 31 Quarter 1 Quarter 2 6,100 5.600 A$610,000 A$560,080 A$692,000 366,000 336,000 415,280 244,800 224,800 276,800 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Advertising expense Shipping expense Salaries and commissions expense (Note: Smith & Chief Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) S Advertising expense 22,600 22,600 22,600 40,408 42.400 42,080 87,600 81,200 97,840 94,288 7,500 7,600 7,600 7,600 16,600 16,600 16,600 16,600 174,800 170,480 191,520 183,160 A$ 69,200 A$ 53,600 A$ 85,280 A$ 68,840 AS AS 2-a. Using the high-low method, separate each mixed expense into variable and fixed elements. 1994 Vartable Cost Quarter 3 6,920 C MEAS Y=AS Y= A$ 22,600 47,680 per unit per unit per unit Quarter 4 6,300 A$630,000 378,000 252,000 AS AS 45 Caleanke 22,600 AS AS +AS 2-b. Using the high-low method, state the cost formula for each mixed expense. Fixed Cost 22,600 XXX
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