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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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:

  1.   Identify the fixed and variable costs associated with Cosgrove.
  2.   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

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