High-Low MethodContribution Form Income StatementOrange CompanyIncome StatementsFor the three months ended June 30, 202XSales in unitsSalesCost of goods soldGross marginOperating expenses:AdvertisingDepreciationRentSalaries and commissionsUtilitiesTotal operating expensesNet incomeApril7,000$ 280,000210,000$70,000$ 5,000 $3,0008,00034,00012,500May10,000P 6A - A$400,000300,000$100,000 $5,000 $3,0008,000June$360,000270,00090,0009,000Required:1) Classify each of the six expenses, including cost of goods sold,as variable, fixed or mixed.5,0003,0008,00040,00038,00017,00015,500$62,500 $73,000 $ 69,500$ 7,500 $ 27,000 $20,500

Name: High-Low MethodContribution Form Income StatementOrange CompanyIncome
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Description: High-Low MethodContribution Form Income StatementOrange CompanyIncome StatementsFor the three months ended June 30, 202XSales in unitsSalesCost of goods soldGross marginOperating expenses:AdvertisingDepreciationRentSalaries and commissionsUtilitiesT

Variable cost is the cost that changes with change in activity of cost driver used. The variable…

Business

Accounting

Orange Company Income Statements For the three months ended June 30, 202X Sales in units Sales Cost of goods sold Gross margin Operating expenses: Advertising Depreciation Rent Salaries and commissions Utilities Total operating expenses Net income April 7,000 May 10,000 $62,500 $ $ 7,500 $ $ 280,000 $400,000 $360,000 210,000 300,000 270,000 $70,000 $100,000 $90,000 June $5,000 $5,000 3,000 3,000 8,000 8,000 34,000 40,000 12,500 17,000 73,000 $ 27,000 $20,500 $ 9,000 Required: 1) Classify each of the six expenses, including cost of goods sold, as variable, fixed or mixed. 5,000 3,000 8,000 38,000 15,500 69,500

Orange Company Income Statements For the three months ended June 30, 202X Sales in units Sales Cost of goods sold Gross margin Operating expenses: Advertising Depreciation Rent Salaries and commissions Utilities Total operating expenses Net income April 7,000 May 10,000 $62,500 $ $ 7,500 $ $ 280,000 $400,000 $360,000 210,000 300,000 270,000 $70,000 $100,000 $90,000 June $5,000 $5,000 3,000 3,000 8,000 8,000 34,000 40,000 12,500 17,000 73,000 $ 27,000 $20,500 $ 9,000 Required: 1) Classify each of the six expenses, including cost of goods sold, as variable, fixed or mixed. 5,000 3,000 8,000 38,000 15,500 69,500

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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