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Required: 1. Identify each of the company's expenses (including cost of goods sold as being variable, fixed, or mixed Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classificatio Variable Fixed Mixed Advertising expense Shipping expense Salaries and commissions expense Mixed Fixed Fixed 2-6. Using the high-low method, separate each mixed expense into variable and fixed elements. 222 AS Variable Cost 18,400 per unit 0 per unit 0 per unit AS AS ८ AS Fixed Cos (55

Required: 1. Identify each of the company's expenses (including cost of goods sold as being variable, fixed, or mixed Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classificatio Variable Fixed Mixed Advertising expense Shipping expense Salaries and commissions expense Mixed Fixed Fixed 2-6. Using the high-low method, separate each mixed expense into variable and fixed elements. 222 AS Variable Cost 18,400 per unit 0 per unit 0 per unit AS AS ८ AS Fixed Cos (55

FINANCIAL ACCOUNTING
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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Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm 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 For the Four Quarters Ending December 31 Quarter 1 Quarter 2 6,300 5,800 A$630,000 A$550,000 378,000 348,000 252,000 232,800 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income MORRISEY & BROWN, LTD. Income Statements Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 22,800 41,200 88,800 7,800 16,800 177,400 AS 74,600 A$ 59,800 Advertising expense Shipping pense Salaries and commissions expense Classificatio Variable: Fixed Mixed Mixed Fixed Fixed (Note: Morrisey & Brown, Ltd's Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) D Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed- 22,800 43,200 81,600 7,800 16,800 172,200 AS A$ A$ G Quarter 3 Quarter 4 7,160 6,400 A$716,000 A$640,000 429,600 384,000 286,400 256,000 22,800 48,648 97,920 7,800 16,800 193,960 AS 92,448 2-6. Using the high-low method, separate each mixed expense into variable and fixed elements. 22,800 42,840 95,440 7,800 16,800 185,680 AS 70,320 Variable Cost 18,400 per unit 0 per unit 0 per unit AS 222 AS AS Fixed Cos (55 1 1
Transcribed Image Text:Morrisey & Brown, Ltd., of Sydney, Australia, is a merchandising firm 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 For the Four Quarters Ending December 31 Quarter 1 Quarter 2 6,300 5,800 A$630,000 A$550,000 378,000 348,000 252,000 232,800 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income MORRISEY & BROWN, LTD. Income Statements Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 22,800 41,200 88,800 7,800 16,800 177,400 AS 74,600 A$ 59,800 Advertising expense Shipping pense Salaries and commissions expense Classificatio Variable: Fixed Mixed Mixed Fixed Fixed (Note: Morrisey & Brown, Ltd's Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) D Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed- 22,800 43,200 81,600 7,800 16,800 172,200 AS A$ A$ G Quarter 3 Quarter 4 7,160 6,400 A$716,000 A$640,000 429,600 384,000 286,400 256,000 22,800 48,648 97,920 7,800 16,800 193,960 AS 92,448 2-6. Using the high-low method, separate each mixed expense into variable and fixed elements. 22,800 42,840 95,440 7,800 16,800 185,680 AS 70,320 Variable Cost 18,400 per unit 0 per unit 0 per unit AS 222 AS AS Fixed Cos (55 1 1
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