ANSWERS ONLY IN FORMULA FORMAT PLEASE

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. XI C FILE HOME INSERT X Calibri - 11 High-Low Method Contribution Format Income Statement - Excel ? PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in A A % M A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Styles To aid in planning, Jay Corporation is preparing a contribution format income Paste BIU - Clipboard Font A1 A D E F - B 1 To aid in planning, Jay Corporation is preparing a contribution format income statement, 2 3 Budgeted information for Quarter of Year 3: Sales in units 17,000 5 Sales price per unit $ 48.00 4 6 8 7 After analyzing expenses, the company has determined the following cost patterns. Cost of goods sold 29.00 per unit 9 Sales commissions 9.50% per dollar of sales 10 11 Administrative salaries $ 45,000.00 per quarter 12 Rent expense $ 27.000,00 per quarter 13 Depreciation expense $ 36,000.00 per quarter 14 | 15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the WES Saved rum Bure Clipboard Font Styles Al 3 f To aid in planning, Jay Corporation is preparing a contribution format income V A B D E F IS 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 Quarter 2 $ 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 $ 72,500.00 13.700 24 Quarter2 $ 80,000.00 14,000 25 Quarter 3 $ 84,000.00 14.300 26 Quarter 4 $ 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 $ 100,000.00 22.500 34 Low level of activity $ 67,000.00 12.500 35 Change in activity 33.000.00 10,000 36 37 TL Sheet1 READY Attempt(s) LI 100% Show Me Hint Saved UITH FOLIE Clipboard Font Styles A Al X To aid in planning, Jay Corporation is preparing a contribution format income B D E F - 31 32 Total Shipping Cost Units 33 High level of activity $ 100,000.00 22,500 34 Low level of activity $ 67,000.00 12,500 35 Change in activity $ 33.000.00 10.000 36 Variable cost 3.30 per unit 38 39 Compute the fixed cost portion using the high level of activity. 40 Total cost at high level of activity 100,000.00 41 Less: Variable cost element 74,250.00 42 Total fixed cost 25.750,00 43 44 2. Prepare a contribution format income statement for Quarter 1 of Year 3. 45 Jay Corporation 47 Budgeted Contribution Format Income Statement 48 For Year 3. Quarter 1 49 50 Sales S 816,000.00 51 Variable expenses 52 Cost of goods sold S 493.000.00 53 Sales commissions 77.520.00 54 Shipping expense 56.100.00 Sheet1 46 + ++ *** READY Attempt(s) el 100% Snow Me Mint Tour Style Clipboard Font Styles A1 f V To aid in planning, Jay Corporation is preparing a contribution format income . A D E F 816,000.00 B 46 Jay Corporation 47 Budgeted Contribution Format Income Statement 48 For Year 3. Quarter 1 49 50 Sales S 51 Variable expenses 52 Cost of goods sold $ 493,000.00 53 Sales commissions 77.520.00 54 Shipping expense 56,100.00 55 Total variable expenses 56 Contribution margin 57 Fixed expenses 58 Administrative salaries 45.000.00 59 Rent expense 27.000.00 60 Shipping expense 61 Depreciation expense 36,000.00 62 Total fixed expenses 63 Net operating income 64 65 66 67 626,620,00 189,380.00 Sheet1 READY Attempt(s) 100% Show Me