Deco-Lampz Ltd. is a small company that sells decorative lamps to decorators and consumers. The company's...

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Deco-Lampz Ltd. is a small company that sells decorative lamps to decorators and consumers. The company's income statements for the last three months are shown below: October August l t September 300 260 anilbe aldahav ub 200 box be Sales in units $39,000 20,800 18,200 Sales revenue $30,000 $45,000 Cost of goods sold Gross profit Operating expenses Salaries and wages expensealianer gt Depreciation expenses oeds Shipping expense Office expense 16,000 24,000 14,000 21,000 5,900 m 6,350 6,170 580 580 580. 1,400 i ni 2,100 bes ooobo170 1,820 120 150 Total operating expenses Income from operation 8,000 9,200 $11,800 8,720 $ 6,000 $ 9,480 Instructions (a) Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. (b) Calculate the cost per unit for each of the variable expenses. (c) Using the high-low method, determine the variable cost per unit and the fixed cost component for each of the mixed costs. (d) Management has projected that the sales volume in November will increase to 400 lamps. Using the cost in- formation determined above, prepare a CVP income statement up to income from operations for November. (Show expense items individually.) Deco-Lampz Ltd. is a small company that sells decorative lamps to decorators and consumers. The company's income statements for the last three months are shown below: October August l t September 300 260 anilbe aldahav ub 200 box be Sales in units $39,000 20,800 18,200 Sales revenue $30,000 $45,000 Cost of goods sold Gross profit Operating expenses Salaries and wages expensealianer gt Depreciation expenses oeds Shipping expense Office expense 16,000 24,000 14,000 21,000 5,900 m 6,350 6,170 580 580 580. 1,400 i ni 2,100 bes ooobo170 1,820 120 150 Total operating expenses Income from operation 8,000 9,200 $11,800 8,720 $ 6,000 $ 9,480 Instructions (a) Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed. (b) Calculate the cost per unit for each of the variable expenses. (c) Using the high-low method, determine the variable cost per unit and the fixed cost component for each of the mixed costs. (d) Management has projected that the sales volume in November will increase to 400 lamps. Using the cost in- formation determined above, prepare a CVP income statement up to income from operations for November. (Show expense items individually.)

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Answer c High Low method Variable cost Highest activity cost Lowest activity cost Highest activity units Lowest activity units Cost of goods sold Unit... View the full answer