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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Transcribed Image Text: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.
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