question archive The Central Valley Company is a merchandising firm that sells a single product
The Central Valley Company is a merchandising firm that sells a single product
Subject:AccountingPrice: Bought3
The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below: Central Valley Company Comparative Income Statement For the Second Quarter April May June 4,500 5.250 6,000 $630,000 $735,000 $840,000 252,000 294,000 336,000 378,000 441.000 504.000 Sales in units. Sales revenue.... Cost of goods sold.. Gross margin..... Selling and administrative expenses: Shipping expense Advertising expense.. Salaries and commissions Insurance expense ..... Depreciation expense. Total selling and administrative expense... Net operating income...... 56,000 70,000 143,000 9,000 42,000 320,000 $58,000 63,500 71,000 70,000 70,000 161,750 180,500 9,000 9,000 42,000 42,000 346,250 372,500 $94.750 $131,500 Required: a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense. b. Compute the company's total contribution margin for May.
