Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: Sales in units. Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income Multiple Choice $60,770 O $64,170 O $59,370 May 4,800 $ 168,000 86,400 81,600 What is the total estimated selling and administrative expense if the company sells 4,940 units? O $64,310 17,000 16,800 29,600 63,400 $ 18,200 June 5,000 $ 175,000 90,000 85,000 17,000 17,500 30,000 64,500 $ 20,500 July 5,500 $ 192,500 99,000 93,500 17,000 19,250 31,000 67,250 $ 26,250

Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: Sales in units. Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income Multiple Choice $60,770 O $64,170 O $59,370 May 4,800 $ 168,000 86,400 81,600 What is the total estimated selling and administrative expense if the company sells 4,940 units? O $64,310 17,000 16,800 29,600 63,400 $ 18,200 June 5,000 $ 175,000 90,000 85,000 17,000 17,500 30,000 64,500 $ 20,500 July 5,500 $ 192,500 99,000 93,500 17,000 19,250 31,000 67,250 $ 26,250

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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