1 Five & Dime 2 Five & Dime is a retail department store. The following cost-volume relationships 3 were used in developing a flexible budget for the store for the current year. 5 4 5 6 7 8 9 Cost of merchandise sold 10 Selling and promotion expense 11 Building occupancy expense 12 Buying expense 13 Delivery expense 14 Credit and collection expense 15 Administrative expense 16 Total Variable Yearly Expenses Fixed per Sales Expenses Dollar $ 0.600 $ 210,000 0.082 186,000 0.022 150,000 0.040 111,000 0.010 72,000 0.002 531,000 0.003 $ 1,260,000 $ 0.759 17 18 Management expected to attain a sales level of $12 million during the current year. At the end 19 of the year, the actual results achieved by the company were as follows: 20 21 Net sales $ 10,500,000 22 Cost of goods sold 6,180,000 23 Selling and promotion expense 1,020,000 24 Building occupancy expense 420,000 25 Buying expense 594,000 26 Delivery expense 183,000 27 Credit and collectgion expense 90,000 28 Administrative expense 564,000 29 30 Required: 31 Prepare a schedule comparing actual results with flexible budget amounts developed 32 for the actual sales volume of $10,500,000. Organize your schedule as an income statement, with 33 net sales, then cost of goods sold, then gross profit (sales minus cost of goods sold), then the 34 expenses (Selling and promotion, Building occupancy, etc.), arriving at Operating income. 35 For the budgeted expense amount, first compute the variable amount using the per unit 36 information, then add the budgeted fixed amount, to arrive at the total expense