FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: Sales $927,500 Less Cost of Goods Sold 275,000 Gross Marign 652,500 Less Operating Expenses: Selling Expenses 205,500 Administrative Expenses 280,000 485,500 Net Income 167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total fixed costs. a) $350,750 b) $432, 250 c) $410,000 d) $315,700
FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below:
Sales $927,500
Less Cost of Goods Sold 275,000
Gross Marign 652,500
Less Operating Expenses:
Selling Expenses 205,500
Administrative Expenses 280,000 485,500
Net Income 167,000
The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable.
Determine the total fixed costs.
a) $350,750
b) $432, 250
c) $410,000
d) $315,700
Step by step
Solved in 3 steps
