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The Central Valley Company Is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are glven below. Central Valley Company Comparative Monthly Income Statements April 5, 200 March June May 5,950 $797, 300 403, 700 Sales in units 5,700 $763, 800 395, 200 6,400 Sales revenue $696,800 368, 200 $857,600 433,e0e Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense 368,600 328,600 393, 600 424, 68e 63, 7ee 77,e00 158, 700 9,700 68, 700 77,000 176, eee 74, 50e 77,ee0 71,950 77,ee0 176,95e 9,7ee 46,000 381,600 187,5ee 9,70e 9, 70e 46, eee 377,400 46,000 46, e00 394, 700 $ 29,900 Total operating expenses 355, 1ee Net income $ (8, 8e0) $(26, 5ee) $ 12, eee Required: 1. Management is concerned about the losses experlenced during the spring and would like to know more about the cost behavlour. Develop a cost equation for each of the costs. COGS Shipping %3D Salaries and commissions Y. %3D

The Central Valley Company Is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are glven below. Central Valley Company Comparative Monthly Income Statements April 5, 200 March June May 5,950 $797, 300 403, 700 Sales in units 5,700 $763, 800 395, 200 6,400 Sales revenue $696,800 368, 200 $857,600 433,e0e Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense 368,600 328,600 393, 600 424, 68e 63, 7ee 77,e00 158, 700 9,700 68, 700 77,000 176, eee 74, 50e 77,ee0 71,950 77,ee0 176,95e 9,7ee 46,000 381,600 187,5ee 9,70e 9, 70e 46, eee 377,400 46,000 46, e00 394, 700 $ 29,900 Total operating expenses 355, 1ee Net income $ (8, 8e0) $(26, 5ee) $ 12, eee Required: 1. Management is concerned about the losses experlenced during the spring and would like to know more about the cost behavlour. Develop a cost equation for each of the costs. COGS Shipping %3D Salaries and commissions Y. %3D

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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The Central Valley Company Is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Central Valley Company Comparative Monthly Income Statements March April 5, 200 May 5,950 June Sales in units 5,780 $763, 800. 395, 200 6,400 $857,600 433,000 Sales revenue $696, 800 368, 200 $797, 300 403, 700 Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions 368,600 328,600 393, 600 424, 600 68, 700 77,000 176, eee 9,780 63, 700 77,000 158, 700 9,700 74, 500 77,000 71,950 77,e00 176,950 9,700 E 46,000 187,500 Insurance expense Depreciation expense Total operating expenses 9, 700 46, e00 46, eee 46,000 377,400 355, 1e0 381,6e0 394, 700 Net income $ (৪, ৪e৪) $(26, 5e0) $ 12, e00 $ 29,900 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behavlour. Develop a cost equation for each of the costs. COGS Y. %3D Shipping %3D Salaries and commissions Y %3D
Transcribed Image Text:The Central Valley Company Is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Central Valley Company Comparative Monthly Income Statements March April 5, 200 May 5,950 June Sales in units 5,780 $763, 800. 395, 200 6,400 $857,600 433,000 Sales revenue $696, 800 368, 200 $797, 300 403, 700 Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions 368,600 328,600 393, 600 424, 600 68, 700 77,000 176, eee 9,780 63, 700 77,000 158, 700 9,700 74, 500 77,000 71,950 77,e00 176,950 9,700 E 46,000 187,500 Insurance expense Depreciation expense Total operating expenses 9, 700 46, e00 46, eee 46,000 377,400 355, 1e0 381,6e0 394, 700 Net income $ (৪, ৪e৪) $(26, 5e0) $ 12, e00 $ 29,900 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behavlour. Develop a cost equation for each of the costs. COGS Y. %3D Shipping %3D Salaries and commissions Y %3D
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