2-a. Using the high-low method, separate each mixed expense into variable and fixed eleme Advertising expense Shipping expense Salaries and commissions expense ..... Advertising expense A$ AS AS Variable Cost per unit per unit per unit Y= A$ Y= A$ Y= A$ A$ A$ A$ 2-b. Using the high-low method, state the cost formula for each mixed expense. EMPRE MARTED Fixed Cost 22,600+ A$ +AS + A$ 22,600 XXX
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- A retailer reports the following for its geographic divisions for the year. The profit margin for its China division is (round the answer to 2 decimal places, i.e. 17.52% would be .18): Americas Europe China Income $ 738,500 $275,250 $ 228,000 Sales 2,110,000 885,000 704,000Morrisey & Brown, Ltd., of Sydney Is a merchandising company 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: Morrisey & Brown, Ltd. Income statements For the Three Months Ended September 30 July August September Sales in units 4,500 5,000 5,500 $ 495,000 $ 550,000 330, 000 220, 000 $ 685, eee 363, e00 sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions 297,000 198,000 242,e00 30,600 35,000 80,000 9,950 30,600 37,400 86, 200 9,950 зе, 6ее 39,8ee 92,400 9,950 Insurance expense Depreciation expense Total selling and administrative expenses 21,800 ו3 ,177 $ 20,650 21,800 185,950 $ 34,050 21,800 194,550 Net operating income $ 47,450 Required: 1. By analyzing the data from the company's Income statements, classify each of Its expenses (Including cost of goods sold) as elther…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: MORRISEY & BROWN, LTD. Income Statements. For the Four Quarters Ending December 31 Quarter 1 Quarter 2 4,700 4,200 21:06 Sales in units Quarter 3 5,240 A$524,000 314,400 Sales revenue A$470,000 A$420,000 Quarter 4 4,800 A$480,000 288,000 192,000 Less: Cost of goods sold 282,000 252,000 Gross margin 188,000 168,000 209,600 Less: Operating expenses: ok Advertising expense 21,200 21, 200 21, 200 21, 200 Shipping expense 34,809 36,800 40,960 36,760 Salaries and commissions 79,200 78,400 90,880 86,160 Insurance expense 6,200 6,200 6,200 6,200 Depreciation expense 15,200 15, 200 156,600 157,800 A$ 31,400 A$ 10,200 A$ 35,160 15, 200 174,440 15, 200 165,520 Total operating expenses Net income A$ 26,480 (Note: Morrisey & Brown, Ltd.'s…
- Morrisey & Brown, Ltd., of Sydney is a merchandising company 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: Morrisey & Broun, Ltd. Income Statements For the Three Months Ended September 30 Sales in units July 4,000 August 4, s00 September 5,000 Sales Cost of goods sold $400, 000 240, 000 $450, 000 270,000 $500, 000 300, 000 Gross margin 180, 000 160, 000 200, 000 Selling and administrative expensesi Advertising expense Shipping expense 21,000 21,000 36, 000 84, 000 6, 000 15,000 21,000 38,000 90,000 6,000 15,000 34, 000 Salaries and commissions Insurance expense Depreciation expense 78,000 6,000 15,000 Total selling and administrative expenses 154,000 162,000 170, 000 Net operating income $ 6,000 $ 18,000 $ 30,000 Required: 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed. Expenses Classification…Lily Company, a British merchandising firm, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses for the last three months are given below: LILY COMPANY Comparative Income Statement Re For the Three Months Ended June 30 April 3.000 May 3,750 June Sales in units 4,500 Sales revenue.... P420,000 P525,000 P630,000 168,000 Less cost of goods sold 210,000 252,000Morrisey & Brown, Ltd., of Sydney is a merchandising company 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: Morrisey & Brown, Ltd.Income StatementsFor the Three Months Ended September 30 July August September Sales in units 4,000 4,500 5,000 Sales $400,000 $450,000 $500,000 Cost of goods sold 240,000 270,000 300,000 Gross margin 160,000 180,000 200,000 Selling and administrative expenses: Advertising expense 21,000 21,000 21,000 Shipping expense 34,000 36,000 38,000 Salaries and commissions 78,000 84,000 90,000 Insurance expense 6,000 6,000 6,000…
- Morrisey & Brown, Limited, of Sydney is a merchandising company 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: sales in units sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Morrisey & Brown, Limited Income statements For the Three Months Ended September 30 Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income July 6,500 $ 650,000 390,000 260,000 Required 1 Required 2 Required 3 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Variable expenses: August 7,000 $ 700,000 420,000 280,000 Fixed expenses: 25,800 73,000 125,000 9,750 16,400 249,950 $ 30,050 Complete this question by entering your answers in the tabs below. Required: 1. By analyzing the data from the company's Income statements, classify each of its expenses…Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $820,000 100 % Cost of goods sold 524,800 70 Gross profit $295,200 30 % Selling expenses $180,400 17 % Administrative expenses 65,600 7 Total operating expenses $246,000 24 % Operating income $49,200 6 % Other revenue 16,400 2 $65,600 8 % Other expense 8,200 1 Income before income tax $57,400 7 % Income tax expense 24,600 4 Net income $32,800 3 %B. The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated sales $560,000 567,923 294,823 10%* Sales Purchases Ending inventory Administrative salaries Marketing expense Sales commissions 50,320 5%** 2%** Rent expense Depreciation expense Utilities 7,500 1,100 2,500 15%*** Taxes *of next month's sales **of sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement.
- Rotorua Products, Limited, of New Zealand markets agricultural products for the burgeoning Asian consumer market The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Year 1 Year 2 Year 3 Year 4 Yeae S Sales $ 4,600, 790e $4,921,690 5 96,916 426, 158 70, 711 $1.393,785 $5,015,37e $ 5,543,20 S 17,60 $5,650,520 Cash Accounts receivable, net Inventory Total current assets $.95,408 407,016 507,300 451,111 833, 392 $1,371,80) 5 78,245 562,006 B4, 150 $1,479,622 $1,311,000 $1,549,3 Current 1labilities 5 302,390 5 327,119 $ 328,044 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year (Round your percentage answers to 1 decimal plece (ie., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 Sales Current assets Cash Accounts receivable, net Inventory Total current assets Current labilitiesRotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales have been reported as follows over the last five years (Year 5 is the most recent year): Year 1 Year 2 Year 3 Year 4 Year 5 Sales $4,546,750 $4,760,520 $5,009,460 $5,429,040 $5,695,160 $ $ 2$ 2$ 87,970 513,073 895,198 $ 73,368 572,803 907,666 Cash 90,291 401,499 815,059 95,951 417,195 869,228 92,001 448,219 832,208 Accounts receivable, net Inventory Total current assets $1,306,849 $1,382,374 $1,372,428 $1,496,241 $1,553,837 Current liabilities $ 318,258 $ 335,298 $ 335,856 $ 325,402 $ 399,778 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 Sales % % % % % Current assets: Cash Accounts receivable Inventory Total current…Rotorua Products, Limited, of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Sales $ 4,632,090 $ 4,889,470 $ 4,994,970 $ 5,440,450 $ 5,736,120 Cash $ 83,883 $ 107,036 $ 94,610 $ 88,260 $ 66,503 Accounts receivable, net 416,977 435,170 442,184 501,060 565,287 Inventory 805,509 868,062 819,753 892,341 915,826 Total current assets $ 1,306,369 $ 1,410,268 $ 1,356,547 $ 1,481,661 $ 1,547,616 Current liabilities $ 303,521 $ 335,136 $ 338,848 $ 335,371 $ 392,801 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)