Morrisey & Brown, Ltd., of Sydney Is a merchandising company that Is the sole distributor of a product that Is Increasing in popularityamong Australian consumers. The company's Income statements for the three most recent months follow:Morrisey & Brown, Ltd.Income statementsFor the Three Months Ended September 30JulyAugustSeptemberSales in units4,5005,0005,500$ 495,000$ 550,000330, 000220, 000$ 685, eee363, e00salesCost of goods soldGross marginselling and administrative expenses:Advertising expenseShipping expenseSalaries and commissions297,000198,000242,e0030,60035,00080,0009,95030,60037,40086, 2009,950зе, 6ее39,8ee92,4009,950Insurance expenseDepreciation expenseTotal selling and administrative expenses21,800ו3 ,177$ 20,65021,800185,950$ 34,05021,800194,550Net operating income$ 47,450Required:1. By analyzing the data from the company's Income statements, classify each of Its expenses (Including cost of goods sold) as elthervariable, fixed, or mixed.2. Using the high-low method, separate each mixed expense Into varlable and fixed elements. Express the varlable and fixed portionsof each mixed expense in the form Y = a + bX.Complete this question by entering your answers in the tabs below.Required 1Required 2By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) aseither variable, fixed, or mixed.ExpensesClassificationCost of goods soldAdvertising expenseShipping expenseSalaries and commissionsInsurance expenseDepreciation expense< Required 1Required 2 > Morrisey & Brown, Ltd., of Sydney Is a merchandising company that Is the sole distributor of a product that is Increasing in popularityamong Australian consumers. The company's Income statements for the three most recent months follow:Morrisey & Brown, Ltd.Income statementsFor the Three Months Ended september 30JulyAugustSeptemberSales in units4,5005,0005,500$ 495, 000$ 550, 000330, 000220,000$ 685, ee0363,000242,e00SalesCost of goods soldGross marginSelling and administrative expenses:Advertising expenseShipping expenseSalaries and commissions297,000198, 00030, 60035,00080, 0009,95030, 60037,40086, 2009,95021,80030,68039,80092,4009,95021,80eInsurance expenseDepreciation expenseTotal selling and administrative expenses21,800177,350$ 20,650185,950$ 34,050194,550$ 47,450Net operating incomeRequlred:1. By analyzing the data from the company's Income statements, classify each of Its expenses (Including cost of goods sold) as elthervariable, fixed, or mixed.2. Using the high-low method, separate each mixed expense into varlable and fixed elements. Express the varlable and fixed portionsof each mixed expense in the form Y = a + bX.Complete this question by entering your answers in the tabs below.Required 1Required 2Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense inthe form Y = a + bx. (Round the Variable cost per unit to 1 decimal place.)Variable CostFixed CostFormulaper unitY =per unitY =< Required 1Required 2 >

There are various types of costs which may incur to a firm while producing and selling the goods or…

Morrisey & Brown, Ltd., of Sydney Is a merchandising company that Is the sole distributor of a product that is Increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: Morrisey & Brown, Ltd. Income statements For the Three Months Ended september 30 July August September Sales in units 4,500 5,e00 $ 495,000 297,000 198,000 $ 550, e00 330, e00 220, 000 5,500 $ 685,000 363,e00 242, eee sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Shipping expense salaries and commissions 30, 600 39,see 92,400 9,950 21,see 194,550 $ 47,450 30,600 35,000 se, e00 9,950 30, 600 37,400 86, 200 Insurance expense 9,950 21,800 185,950 $ 34,050 Depreciation expense Total selling and administrative expenses 21,800 177,350 $ 20,650 Net operating income Requlred: 1. By analyzing the data from the company's Income statements, classify each of Its expenses (Including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense Into varlable and fixed elements. Express the varlable and fixed portions of each mixed expense in the form Y = a + bX. Complete this question by entering your answers in the tabs below. Required 1 Required 2 By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. Expenses Classification Cost of goods sold Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 1A: Costco is the largest chain of membership warehouse clubs in the world based on sales volume, and it...