1. Analyze a mixed cost using a scattergraph plot and the high-low method 2. Prepare income statements for a merchandising company using the traditional and contribution formats. All answers must be entered as a formula. Click OK to begin. OK Save Calibri - 11 96 M Paste B TU- CE- Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 To aid in planning, Jay Corporation is preparing a contribution format income A B D E F 1 To aid in planning, Jay Corporation is preparing a contribution format income statement. 2 3 Budgeted information for Quarter 1 of Year 3: Sales in units 5 Sales price per unit 4 17,000 48.00 $ 6 5 7 After analyzing expenses, the company has determined the following cost patterns. 8 Cost of goods sold 29.00 per unit 9 Sales commissions 9.50% per dollar of sales 10 11 Administrative salaries S 45,000.00 per quarter 12 S 27,000.00 per quarter 13 Depreciation expense S 36,000.00 per quarter 14 Rent expense 15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the last eight quarters are: 16 17 Year 1 Total Shipping Cost Units 18 Quarter 1 $ 67,000.00 12,500 19 Quarter2 $ 94,000.00 21.000 20 Quarter 3 $ 89,800.00 13,800 21 Quarter 4 $ 92,600.00 20.000 22 Year 2 23 Quarter 1 S 72.500.00 13.700 Sheet1 READY Attempt 100% Paste V F . Calibri 96 M BIU- A. Alignment Number Conditional Format Cell Cells Editing Formatting Table Styles Clipboard Font Styles f To aid in planning, Jay Corporation is preparing a contribution format income A B D E F 23 Quarter 1 $ 72,500.00 13,700 24 Quarter2 $ 80,000.00 14.000 25 Quarter 3 $ 84,000.00 14,300 26 Quarter 4 S 100,000.00 22,500 27 28 Use the data to answer the following, 29 30 1. Using the high-low method, determine a cost formula for shipping expenses. 31 32 Total Shipping Cost Units 33 High level of activity 34 Low level of activity 35 Change in activity 36 37 Variable cost 38 39 Compute the fixed cost portion using the high level of activity, 40 Total cost at high level of activity 41 Less: Variable cost element 42 Total fixed cost 5 per unit 44 2. Prepare a contribution format income statement for Quarter 1 of Year 3. 45 46 Jay Corporation Sheet1 IN 100% READY Attamatta Calibri - 11 Paste BTU - - | A A %6 Alignment Number Conditional Format as Cell Cells Formatting Table Styles Editing Styles To aid in planning, Jay Corporation is preparing a contribution format income > Clipboard Font A1 X c D E F B 46 Jay Corporation 47 Budgeted Contribution Format Income Statement 48 For Year 3, Quarter 1 49 50 Sales 51 Variable expenses: 52 Cost of goods sold 53 Sales commissions 54 Shipping expense 55 Total variable expenses 56 Contribution margin 57 Fixed expenses: 58 Administrative salaries 59 Rent expense 60 Shipping expense 61 Depreciation expense 62 Total fixed expenses 63 Net operating income 64 65 66 67 . Sheet1 + 100% READY Attemptisk Chant