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 Multiple Choice $20,600 May Total selling and administrative expenses Net operating income What is the estimated net operating income if the company sells 5,280 units? en on 4,800 $ 168,000 86,400 81,600 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 Multiple Choice $20,600 May Total selling and administrative expenses Net operating income What is the estimated net operating income if the company sells 5,280 units? en on 4,800 $ 168,000 86,400 81,600 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Multiple Choice
Total selling and administrative expenses
Net operating income
What is the estimated net operating income if the company sells 5,280 units?
$20,600
May
4,800
$ 168,000
86,400
81,600
Se con
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
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