Pelotoni Dips Inc. manufactures a single product that has become very popular in the Windsor area. The income statement for the most recent three months prior to taxes are as follows: Pelotini Dips Inc. Income Statement Quarterly Statement ending March 31, 2021 Q1 Q2 Q3 Q4 Sales in Units 4,400 4,000 5,000 4,600 Sales Revenues $440,000 $400,000 $500,000 $460,000 Less:COGS $264,000 $240,000 $300,000 $276,000 Gross Margin $176,000 $160,000 $200,000 $184,000 Less: Expenses Advertising $ 21,000 $ 21,000 $ 21,000 $ 21,000 Shipping $ 35,000 $ 34,000 $ 38,000 $ 36,000 Salaries and Commissions $ 83,000 $ 78,000 $ 90,000 $ 85,000 Insurance $ 6,000 $ 6,000 $ 6,000 $ 6,000 Depreciation $ 15,000 $ 15,000 $ 15,000 $ 15,000 Total Operating Expenses $160,000 $154,000 $170,000 $163,000 Net Income (before taxes) $ 16,000 $ 6,000 $ 30,000 $ 21,000 Using the high-low method, separate each mixed expense into variable and fixed expenses. Provide the cost formula for each mixed expense. [Hint: identify your expenses to find out the mixed expenses.] Round values to 2 decimal places
Pelotoni Dips Inc. manufactures a single product that has become very popular in the Windsor area. The income statement for the most recent three months prior to taxes are as follows: Pelotini Dips Inc. Income Statement Quarterly Statement ending March 31, 2021 Q1 Q2 Q3 Q4 Sales in Units 4,400 4,000 5,000 4,600 Sales Revenues $440,000 $400,000 $500,000 $460,000 Less:COGS $264,000 $240,000 $300,000 $276,000 Gross Margin $176,000 $160,000 $200,000 $184,000 Less: Expenses Advertising $ 21,000 $ 21,000 $ 21,000 $ 21,000 Shipping $ 35,000 $ 34,000 $ 38,000 $ 36,000 Salaries and Commissions $ 83,000 $ 78,000 $ 90,000 $ 85,000 Insurance $ 6,000 $ 6,000 $ 6,000 $ 6,000 Depreciation $ 15,000 $ 15,000 $ 15,000 $ 15,000 Total Operating Expenses $160,000 $154,000 $170,000 $163,000 Net Income (before taxes) $ 16,000 $ 6,000 $ 30,000 $ 21,000 Using the high-low method, separate each mixed expense into variable and fixed expenses. Provide the cost formula for each mixed expense. [Hint: identify your expenses to find out the mixed expenses.] Round values to 2 decimal places
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pelotoni Dips Inc. manufactures a single product that has become very popular in the Windsor area. The income statement for the most recent three months prior to taxes are as follows:
| Pelotini Dips Inc. | ||||
| Income Statement | ||||
| Quarterly Statement ending March 31, 2021 | ||||
| Q1 | Q2 | Q3 | Q4 | |
| Sales in Units | 4,400 | 4,000 | 5,000 | 4,600 |
| Sales Revenues | $440,000 | $400,000 | $500,000 | $460,000 |
| Less:COGS | $264,000 | $240,000 | $300,000 | $276,000 |
| Gross Margin | $176,000 | $160,000 | $200,000 | $184,000 |
| Less: Expenses | ||||
| Advertising | $ 21,000 | $ 21,000 | $ 21,000 | $ 21,000 |
| Shipping | $ 35,000 | $ 34,000 | $ 38,000 | $ 36,000 |
| Salaries and Commissions | $ 83,000 | $ 78,000 | $ 90,000 | $ 85,000 |
| Insurance | $ 6,000 | $ 6,000 | $ 6,000 | $ 6,000 |
| $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | |
| Total Operating Expenses | $160,000 | $154,000 | $170,000 | $163,000 |
| Net Income (before taxes) | $ 16,000 | $ 6,000 | $ 30,000 | $ 21,000 |
- Using the high-low method, separate each mixed expense into variable and fixed expenses. Provide the cost formula for each mixed expense. [Hint: identify your expenses to find out the mixed expenses.] Round values to 2 decimal places
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