1. Analyze a mixed cost using the high-low method. 2. Prepare an income statement for a merchandising company using the contribution format. High-Low Method; Contribution Format Income Statement - Excel x Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 A A % Paste BIU. Cell Alignment Number Conditional Format as Formatting Table Styles- Cells Clipboard Fant Styles A1 fx Jay Corporation has decided to prepare contribution income statements for A B C D E 1 y corporation nas decided to prepare contribution Income statements for internal planning. 2 3 udgeted information for Quarter 1 of Year 3: 4 Sales in units 17,000 5 Sales price per unit $ 48.00 6 7 fter analyzing expenses, the company has determined the following cost patterns. 8 Variable Cost of Goods Sold (per unit) $ 29.00 9 Sales Commissions (per dollar of sales) 9.50% 10 11 Fixed Manufacturing Overhead (per quarter) $ 45,000.00 12 Administrative Salaries (per quarter) 27,000.00 13 Depreciation Expense (per quarter) $ 36,000.00 14 15 hipping Cost has been determined to be mixed with the following costs for the past two years: 16 17 ar 1 Total Cost Units 18 Quarter 1 19 Quarter2 20 Quarter 3 21 Quarter 4 ssss $ 67,000.00 12,500 $ 94,000.00 21,000 89,800.00 13,800 $ 92,600.00 20,000 22 ear 2 23 Quarter 1 S 72,500.00 13,700 24 Quarter2 S 80.000.00 14.000 Sheet1 4 READY Attempt(s) 100% 1. Analyze a mixed cost using the high-low method. 2. Prepare an income statement for a merchandising company using the contribution format. FILE HOME INSERT E Paste Clipboard A1 14 Calibri 23 Quarter 1 BIU Font High-Low Method; Contribution Format Income Statement - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW 11 -A A % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells V X fx 24 Quarter2 25 Quarter 3 26 Quarter 4 27 28 Use the data to answer the following. 29 Sign In Jay Corporation has decided to prepare contribution income statements for B C D E $ 72,500.00 13,700 S 80,000.00 14,000 $ 84,000.00 14,300 $ 100,000.00 22,500 30 1. Using the high-low method, determine a cost formula for shipping expenses. 31 32 33 High level of activity Total Shipping Cost Units 34 Low level of activity 35 Change in activity 36 37 Variable shipping cost per unit 38 per unit 39 Fixed shipping cost: (Note: please use the highest activity point to compute the total fixed cost.) 40 Total shipping cost at high level of activity 41 Less: Variable shipping cost at high level of activity 42 Total fixed shipping cost 43 44 2. Prepare a contribution margin income statement for Quarter 1 of Year 3. 45 46 READY Attempt(s) Sheet1 Jay Corporation. I 100% 1. Analyze a mixed cost using the high-low method. 2. Prepare an income statement for a merchandising company using the contribution format. FILE HOME INSERT Calibri BIU. Paste Clipboard A1 Fant High-Low Method: Contribution Format Income Statement - Excel PAGE LAYOUT 11 ' ' fx A FORMULAS DATA % REVIEW VIEW Alignment Number Conditional Format as Cell Cells Formatting Table Styles- Styles ? Sign In Jay Corporation has decided to prepare contribution income statements for B 43 44 2. Prepare a contribution margin income statement for Quarter 1 of Year 3. 45 46 47 48 49 Jay Corporation Budgeted Income Statement For Year 3, Quarter 1 50 Sales 51 Variable expenses: 52 Cost of goods sold 53 Sales commissions 54 Shipping expense (Variable portion) 55 Total variable expenses 56 Contribution margin 57 Fixed expenses: 58 Fixed Manufacturing Overhead 59 Administrative Salaries GO Shipping expense (Fixed portion) 61 Depreciation expense 62 Total fixed expenses 63 Net operating income 64 65 66 READY Attempt(s) Sheet1 C If D E + 100%