HighLow Method= Highest Activity Cost- Lowest Activity Cost/ Highest Activity Units - Lowest Activity Units.

If anything is Missing please let me know.

1 Frank Company Assignment 2 Income Statements 3 For the 3 months ending September 30, 2020 4 July 4,000 August September 4,500 5,000 $ 400,000 $ 450,000 $ 500,000 240,000 270,000 300,000 160,000 180,000 200,000 5 6 Sales in units 7 8 Sales 9 Cost of goods sold 10 Gross Margin 11 Selling & Administrative Expenses: 12 Advertising 13 Shipping 14 Salaries and commissions 15 Insurance 16 Depreciation 17 Total Selling & Administrative Expenses 18 19 Net Operating Income 20 21,000 38,000 90,000 21,000 34,000 78,000 6,000 15,000 154,000 21,000 36,000 84,000 6,000 15,000 162,000 6,000 15,000 170,000 $ 6,000 $ 18,000 $30,000 21 22 23 Required: 24 1. Use the high low method to determine the cost equation for each item on the income statement. 25 2. Using the cost equations, create the contribution income statement for 5,000 units. 26 3. Using the cost equations, create the contribution income statement for 4,800 units. 27