A company incurred the following expenses at representative high and low levels of activity: COST OF SALES GOODS SOLD DEPRECIATION SUPPLIES UTILITIES DELIVERY HIGH 250,000 150,000 20,000 12,500 4,500 7,700 LOW 200,000 120,000 20,000 10,000 4,000 6,200 (1) Compute the fixed and/or variable behavior of each expense utilizing the high-low points method. Label and show all calculations. (2) Compute the breakeven point in dollar sales.
A company incurred the following expenses at representative high and low levels of activity: COST OF SALES GOODS SOLD DEPRECIATION SUPPLIES UTILITIES DELIVERY HIGH 250,000 150,000 20,000 12,500 4,500 7,700 LOW 200,000 120,000 20,000 10,000 4,000 6,200 (1) Compute the fixed and/or variable behavior of each expense utilizing the high-low points method. Label and show all calculations. (2) Compute the breakeven point in dollar sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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