Jewelz Boxz Inc. is a small company that manufactures oak jewellery boxes that are distributed through...

 

Transcribed Image Text:

Jewelz Boxz Inc. is a small company that manufactures oak jewellery boxes that are distributed through fine gift stores. The company's income statements for the last four months are shown below: June July August 255 Sales in units Sales revenue Cost of goods sold Gross profit Operating expense Salaries and wages expense Insurance expenses Shipping expense Office expenses Total operating expenses Income from operation 240 $24,000 13,200 10,800 2,960 200 1,440 179 4,779 $6,021 205 $20,500 11,275 9,225 2,820 200 1,230 158 4,408 $ 4,817 $25,500 14,025 11,475 3,020 200 1,530 188 4,938 $6,537 September 295 $29,500 16,225 13,275 3,180 200 1,770 212 5,362 $7,913 Instructions (a) sold) as being variable, fixed, or mixed. (b) Calculate the cost per unit for each of the variable expenses. (c) Using the high-low method, determine the variable cost per unit and the fixed cost component for each of the mixed costs. (d) The manager expects to sell 320 jewellery boxes in October. Using the cost information determined above. prepare a CVP income statement up to income from operations for October. (Show expense items individually.) Jewelz Boxz Inc. is a small company that manufactures oak jewellery boxes that are distributed through fine gift stores. The company's income statements for the last four months are shown below: June July August 255 Sales in units Sales revenue Cost of goods sold Gross profit Operating expense Salaries and wages expense Insurance expenses Shipping expense Office expenses Total operating expenses Income from operation 240 $24,000 13,200 10,800 2,960 200 1,440 179 4,779 $6,021 205 $20,500 11,275 9,225 2,820 200 1,230 158 4,408 $ 4,817 $25,500 14,025 11,475 3,020 200 1,530 188 4,938 $6,537 September 295 $29,500 16,225 13,275 3,180 200 1,770 212 5,362 $7,913 Instructions (a) sold) as being variable, fixed, or mixed. (b) Calculate the cost per unit for each of the variable expenses. (c) Using the high-low method, determine the variable cost per unit and the fixed cost component for each of the mixed costs. (d) The manager expects to sell 320 jewellery boxes in October. Using the cost information determined above. prepare a CVP income statement up to income from operations for October. (Show expense items individually.)

Answer rating: 100% (QA)

Jewelz Box Inc Requirement a Variable costs Cost of Goods Sold Shipping Expense Fixed Costs Insuranc... View the full answer