Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: Sales in units. Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income Multiple Choice $60,770 O $64,170 O $59,370 May 4,800 $ 168,000 86,400 81,600 What is the total estimated selling and administrative expense if the company sells 4,940 units? O $64,310 17,000 16,800 29,600 63,400 $ 18,200 June 5,000 $ 175,000 90,000 85,000 17,000 17,500 30,000 64,500 $ 20,500 July 5,500 $ 192,500 99,000 93,500 17,000 19,250 31,000 67,250 $ 26,250

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements:
Sales in units.
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Advertising
Shipping
Salaries and commissions
Total selling and administrative expenses
Net operating income
Multiple Choice
O
$60,770
$64,170
What is the total estimated selling and administrative expense if the company sells 4,940 units?
$59,370
May
4,800
$ 168,000
86,400
81,600
$64,310
17,000
16,800
29,600
63,400
$ 18,200
June
5,000
$ 175,000
90,000
85,000
17,000
17,500
30,000
64,500
$ 20,500
July
5,500
$ 192,500
99,000
93,500
17,000
19,250
31,000
67,250
$ 26,250
Transcribed Image Text:Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: Sales in units. Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income Multiple Choice O $60,770 $64,170 What is the total estimated selling and administrative expense if the company sells 4,940 units? $59,370 May 4,800 $ 168,000 86,400 81,600 $64,310 17,000 16,800 29,600 63,400 $ 18,200 June 5,000 $ 175,000 90,000 85,000 17,000 17,500 30,000 64,500 $ 20,500 July 5,500 $ 192,500 99,000 93,500 17,000 19,250 31,000 67,250 $ 26,250
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