Gallop Corporation prepared the following report for the first quarter of this year: Sales (@ $3,00 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses $8,400, 000 3,372,000 5,028, 000 $1,106,000 1,180,000 2,286, 000 $2,742,000 Income Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: • Fixed portion of the cost of goods sold for the quarter amounted to $1,132,000. Of the selling expenses, 20% was variable with respect to the number of units. • All of the administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Cost of goods sold Selling expenses Y3D per quarter Y3D per quarter

Gallop Corporation prepared the following report for the first quarter of this year: Sales (@ $3,00 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses $8,400, 000 3,372,000 5,028, 000 $1,106,000 1,180,000 2,286, 000 $2,742,000 Income Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: • Fixed portion of the cost of goods sold for the quarter amounted to $1,132,000. Of the selling expenses, 20% was variable with respect to the number of units. • All of the administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Cost of goods sold Selling expenses Y3D per quarter Y3D per quarter

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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