management accounting

Gallop Corporation prepared the following report for the first quarter of this year Sales ( $2,700 per unit) Less: Cost of goods sold Gross margin Less: Selling expenses Administrative expenses Income $6,480,000 3,232,000 3,248, eee 17.59 $1,044,000 1.040,000 2,084, eee $1,164, eee Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following Fixed portion of the cost of goods sold for the quarter amounted to $1,024,000 . Of the selling expenses, 20% was variable with respect to the dumber of units All of the administrative expenses were fixed Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) $ + Cost of goods sold Selling expenses Y = y 920 per quarter 87 per quarter $ 1,024,000.00 X $ 835,200.00 $ + 2. Redo the above income statement using a contribution margin approach. (Do not round intermediate calculations.) GALLOP CORPORATION Income Statement For the First Quarter of this Year Less: Variable costs Less: Fixed expenses