Explain how to solve problems sent in attachment
Explain how to solve problems sent in attachment Document Preview: 4-12 Morris & Brown, Ltd Income Statements For the Three Months Ended September 30 July August September Sales in units 4000 4500 5000 Sales revenue A$400,000 A$450,000 A$500,000 Cost of good sold 240,000 270,000 300,000 Gross margin 160,000 180,000 200,000 Selling and administrative expenses:
Advertising expense 21,000 21,000 21,000 Shipping expense 34,000 36,000 38,000 Salaries& commission 78,000 84,000 90,000 Insurance expense 6,000 6,000 6,000 Depreciate expense 15,000 15,000 15,000 Total selling& admin expense 154,000 162,000 170,000 Net operation income$ 6000 A$ 18,000 A$30,000 (Note: Morrisey & Brown, Ltd. Australian- formatted income statement has been recast in the format common in the United States. Accounting assignment help.
The Australian dollar is denoted here by A$.) Question: Identify each of the company’s expenses (including the cost of goods sold) as either variable, fixed, or mixed. Using the high- low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.
Redo the company’s income statement at the 5,000-unit level of activity using the contribution format. 2) 5-12 Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $450,000 $30 Variable expenses 180,000 12 Contribution margin 270,000 18 Fixed expenses 216,000 Net Operating income 54,000 What is the monthly break-even point in units sold and in sales dollars?
Without resorting to computations, what is the total contribution margin at the break-even point? How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. Verify your answer by preparing a contribution format income statement at the target sales level. 3) 6-1 Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each… Attachments: Accounting-ho….docx May 12 2013 09:56 PM
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