Morrisey & Brown. Limited, is the sole distributor of a product with growing sales. Its income...

 

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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, Limited Income Statements For the Three Months Ended September 30 Sales 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: July 5,500 $577,500 346,500 231,000 August 5,000 $630,000 September 378,000 6,503 $682,500 489,508 252,000 24,200 57,000 104,000 24,208 60, 200 110,600 273,000 24,200 63,400 9,200 19,600 214,080 9,208 19,608 223,000 117,200 9,208 19,600 233,600 $ 17,000 $ 28,200 $ 39,400 1. 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. 2. Using the high-low 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 + bx. 3. Redo the company's income statement at the 6,500-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification Required 1 Required 2 > 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, Limited Income Statements For the Three Months Ended September 30 Sales 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: July 5,500 $577,500 346,500 231,000 August 5,000 $630,000 September 378,000 6,503 $682,500 489,508 252,000 24,200 57,000 104,000 24,208 60, 200 110,600 273,000 24,200 63,400 9,200 19,600 214,080 9,208 19,608 223,000 117,200 9,208 19,600 233,600 $ 17,000 $ 28,200 $ 39,400 1. 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. 2. Using the high-low 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 + bx. 3. Redo the company's income statement at the 6,500-unit level of activity using the contribution format. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Classification Required 1 Required 2 >