Question: Managerial Accounting Problem 2. Fixed and variable costing: You are auditing the commissions earned from your sales department and you are given the following data.

Managerial Accounting Problem

2. Fixed and variable costing:

You are auditing the commissions earned from your sales department and you are given the following data. Sales salaries and commissions are $60,000 when 240,000 units are sold and $80,000 when 440,000 units are sold.

A) Using the high-low method, what is the variable portion of sales salaries and commissions?

B) What is the fixed portion of sales salaries and commissions?

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