PROBLEM $3-16$ Cost Behaviour; High$-$Low Method; Contribution Format Income Statement $[$LO$1,$ LO$2,$ LO$3]$PROBLEM $3-16$ Cost Behaviour; High$-$Low Method; Contribution Format Income Statement

$[$LO$1,$ LO$2,$ LO$3]$

Skate World is a merchandising company that sells skateboards both at its retail store and its online

store. Results for the most recent three months are shown below.

Required:

Identify each of the company's expenses $($including cost of goods sold$)$ as either variable, fixed, or

mixed.

Using the high$-$low method, separate each mixed expense into variable and fixed elements. State

the cost formula for each mixed expense.

Redo the company's income statement for September using the contribution format.

Skate World is a merchandising company that sells skateboards both at its retail store and its online store. Results for the most recent three months are shown below.

$\backslash$table$[[,$July,August,September$],[,4,000,4,500,5,000],[$Sales$,$$$400,000,$$$450,000,$$$500,000$