Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements
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Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements for the three most recent months follow:Morrisey & Brown, LimitedIncome StatementsFor the Three Months Ended September July August SeptemberSales in units Sales $ $ $ Cost of goods sold Gross margin Selling and administrative expenses:Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income $ $ $ Required: By analyzing data from the company's income statements, classify each of its expenses including cost of goods sold as either variable, fixed, or mixed.Using the highlow method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y a bXRedo the companys income statement at the unit level of activity using the contribution format.Redo the company's income statement at the unit level of activity using the contribution format. Note: Round your intermediate calculations to decimal place.Morrisey and Brown, LimitedIncome StatementFor the Month Ended September
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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