Cosgrove Company, Inc. is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below: Identify the fixed and variable costs associated with Cosgrove. Calculate the average costs per month. Cosgrove Company Traditional Format Income Statement For the Three Months Ended June 30 April May June Sales in Units 3,000 3,750 4,500 Sales Revenue 420,000 525,000 630,000 Cost of Goods Sold 168,000 210,000 252,000 Gross Margin 252,000 315,000 378,000 Selling and Administrative Expenses: Shipping Expense 44,000 50,000 56,000 Advertising Expense 70,000 70,000 70,000 Salaries and Commissions 107,000 125,000 143,000 Insurance Expense 9,000 9,000 9,000 Depreciation Expense 42,000 42,000 42,000 Total Selling and Administrative Expenses 272,000 296,000 320,000 Net Operating Income (Loss) $(20,000) $19,000 $58,000
Cosgrove Company, Inc. is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below:
- Identify the fixed and variable costs associated with Cosgrove.
- Calculate the average costs per month.
Cosgrove Company Traditional Format Income Statement For the Three Months Ended June 30 |
|||
|
April |
May |
June |
Sales in Units |
3,000 |
3,750 |
4,500 |
|
|
|
|
Sales Revenue |
420,000 |
525,000 |
630,000 |
Cost of Goods Sold |
168,000 |
210,000 |
252,000 |
Gross Margin |
252,000 |
315,000 |
378,000 |
Selling and Administrative Expenses: |
|
|
|
Shipping Expense |
44,000 |
50,000 |
56,000 |
Advertising Expense |
70,000 |
70,000 |
70,000 |
Salaries and Commissions |
107,000 |
125,000 |
143,000 |
Insurance Expense |
9,000 |
9,000 |
9,000 |
|
42,000 |
42,000 |
42,000 |
Total Selling and Administrative Expenses |
272,000 |
296,000 |
320,000 |
Net Operating Income (Loss) |
$(20,000) |
$19,000 |
$58,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images