Irish Corporation is a distributor that has an exclusive franchise to sell a particular product made...

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Irish Corporation is a distributor that has an exclusive franchise to sell a particular product made by another company. Irish income statements for the last two years are given below: Units Sold Sales revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Net Operating Income This Year 400,000 2,000,000 1,200,000 800,000 520,000 280,000 Last Year 320,000 1,600,000 960,000 640,000 488,000 152,000 Operating expenses are a mixture of fixed and variable and mixed costs that vary with respect to the number of units sold. Required: 1. Estimate the company's variable operating expenses per unit, and its total fixed operating expenses per year. 2. Compute the operating income if sales is 240,000 units. Irish Corporation is a distributor that has an exclusive franchise to sell a particular product made by another company. Irish income statements for the last two years are given below: Units Sold Sales revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Net Operating Income This Year 400,000 2,000,000 1,200,000 800,000 520,000 280,000 Last Year 320,000 1,600,000 960,000 640,000 488,000 152,000 Operating expenses are a mixture of fixed and variable and mixed costs that vary with respect to the number of units sold. Required: 1. Estimate the company's variable operating expenses per unit, and its total fixed operating expenses per year. 2. Compute the operating income if sales is 240,000 units.

Answer rating: 100% (QA)

To estimate the companys variable operating expenses per unit and its total fixed operating expenses per year we can use the data from the income stat... View the full answer