Using the how-low method, separate the mixed expenses (shipping expenses and salaries and commission expense) into variable and fixed components.Redo the company's income statement at the 10,000 unit level of activity using the contribution approach format. FileEditInsert Format HelpBIUSA田,图,三Arial12f*ABFG41.CEC Corporation distributes paper cups. CEC owns some shipping equipment whose costs are sometimes lumped inwith Shipping Expense. Below is a comparative income statement listing the last three months activity.8CEC CorportionComparative Income StatementThree Months Ending March 31, 20191011MarchJanuary6,000$690,000$414,000$276,000February8,000$920,000$552,000$368,0001210,000$1,150,000$690,000$460,00013 Sales in Units14 Sales Revenue15 Cost of Goods Sold(100% Varible)16 Gross Margin17 Selling & Administrative Expenses:18 Shipping Expense19 Advertising Expense20 Salaries & Commission Expense21 Insurance Expense22 Depreciation Expense23 Total Selling & Adminis trative Expense24 Net Operating Income$42,000$65,000$125,000$12,000S5,000$34,000$65,000$49,000S65,000$135,000$12,000$5,000$110,000$12,000$5,000$226,000$50,000$249,000$266,000$119,000$194,00025Test Sheet3

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Description: Using the how-low method, separate the mixed expenses (shipping expenses and salaries and commission expense) into variable and fixed components.Redo the company's income statement at the 10,000 unit level of activity using the contribution approach

Variable Cost per Unit = Change in Variable CostChange in Units

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Accounting

1.CEC Corporation distributes paper cups. CEC owns some shipping equipment whose costs are sometimes lumped in with Shipping Expense. Below is a comparative income statement listing the last three months activity. CEC Corportion Comparative Income Statement Three Months Ending March 31, 2019. March Jaлиary 6,000 S690,000 $414,000 $276,000 February 8,000 $920,000 $552,000 $368,000 Sales in Units 10,000 $1,150,000 $690,000 $460,000 Sales Revenue Cost of Goods Sold(100% Varible) Gross Margin Selling & Administrative Expenses: Shipping Expense Advertising Expense Salaries & Commission Expense $42,000 $65,000 S125,000 $12,000 $49,000 $34,000 $65,000 $110,000 $12,000 $5,000 S65,000 $135,000 S12,000 S5,000 Insurance Expense Depreciation Expense Total Selling & Administrative Expense Net Operating Income S5,000 S226,000 S50,000 S249,000 S266,000 S119,000 $194,000

1.CEC Corporation distributes paper cups. CEC owns some shipping equipment whose costs are sometimes lumped in with Shipping Expense. Below is a comparative income statement listing the last three months activity. CEC Corportion Comparative Income Statement Three Months Ending March 31, 2019. March Jaлиary 6,000 S690,000 $414,000 $276,000 February 8,000 $920,000 $552,000 $368,000 Sales in Units 10,000 $1,150,000 $690,000 $460,000 Sales Revenue Cost of Goods Sold(100% Varible) Gross Margin Selling & Administrative Expenses: Shipping Expense Advertising Expense Salaries & Commission Expense $42,000 $65,000 S125,000 $12,000 $49,000 $34,000 $65,000 $110,000 $12,000 $5,000 S65,000 $135,000 S12,000 S5,000 Insurance Expense Depreciation Expense Total Selling & Administrative Expense Net Operating Income S5,000 S226,000 S50,000 S249,000 S266,000 S119,000 $194,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...

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