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 And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 3MAD: The general merchandise retail industry has a number of segments represented by the following...
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73f4f79f-d57a-4482-bdc6-0abeee1bc8b6%2Ff2c8ed09-793d-4ec1-add8-185e242322f8%2Fitakxcq_processed.jpeg&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning