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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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