Homework Help is Here – Start Your Trial Now!
Business
Accounting
Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: sales in units Sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 Required 1 Required 2 July 6,500 $ 650,000 390,000 260,000 Variable expenses: 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Fixed expenses: August Required 3 7,000 $ 700,000 420,000 280,000 25,800 73,000 125,000 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. Complete this question by entering your answers in the tabs below. 9,750 16,400 249,950 $ 30,050 2. Using the high-low method, separate each mixed expense Into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. 3. Redo the company's Income statement at the 7,500-unit level of activity using the contribution format. September 7,500 $ 750,000 450,000 300,000 25,800 77,000 132,000 9,750 16,400 260,950 $ 39,050 Redo the company's income statement at the 7,500-unit level of activity using the contribution format. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 0 0

Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: sales in units Sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 Required 1 Required 2 July 6,500 $ 650,000 390,000 260,000 Variable expenses: 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Fixed expenses: August Required 3 7,000 $ 700,000 420,000 280,000 25,800 73,000 125,000 Required: 1. By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. Complete this question by entering your answers in the tabs below. 9,750 16,400 249,950 $ 30,050 2. Using the high-low method, separate each mixed expense Into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. 3. Redo the company's Income statement at the 7,500-unit level of activity using the contribution format. September 7,500 $ 750,000 450,000 300,000 25,800 77,000 132,000 9,750 16,400 260,950 $ 39,050 Redo the company's income statement at the 7,500-unit level of activity using the contribution format. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 0 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: sales in units sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Morrisey & Brown, Limited Income statements For the Three Months Ended September 30 Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income July 6,500 $ 650,000 390,000 260,000 Required 1 Required 2 Required 3 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Variable expenses: August 7,000 $ 700,000 420,000 280,000 Fixed expenses: 25,800 73,000 125,000 9,750 16,400 249,950 $ 30,050 Complete this question by entering your answers in the tabs below. Required: 1. By analyzing the data from the company's Income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense Into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. 3. Redo the company's Income statement at the 7,500-unit level of activity using the contribution format. September 7,500 $ 750,000 450,000 300,000 25,800 77,000 132,000 Redo the company's income statement at the 7,500-unit level of activity using the contribution format. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 0 9,750 16,400 260,950 $ 39,050 0
Transcribed Image Text:Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: sales in units sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Morrisey & Brown, Limited Income statements For the Three Months Ended September 30 Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income July 6,500 $ 650,000 390,000 260,000 Required 1 Required 2 Required 3 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Variable expenses: August 7,000 $ 700,000 420,000 280,000 Fixed expenses: 25,800 73,000 125,000 9,750 16,400 249,950 $ 30,050 Complete this question by entering your answers in the tabs below. Required: 1. By analyzing the data from the company's Income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense Into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bx. 3. Redo the company's Income statement at the 7,500-unit level of activity using the contribution format. September 7,500 $ 750,000 450,000 300,000 25,800 77,000 132,000 Redo the company's income statement at the 7,500-unit level of activity using the contribution format. Morrisey & Brown, Limited Income Statement For the Month Ended September 30 0 9,750 16,400 260,950 $ 39,050 0
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Pricing Decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS