Please provide solutions. ABD Limited is a merchandising company that is the sole distributor of a product that isincreasing in popularity among consumers. The company's income statements for thethree most recent months follow:Sales in units4,0004,5005,000Sales revenue20,000,00022,500,00025,000,000Cost of goods sold12,000,00013,500,00015,000,000Gross profit8,000,0009,000,00010,000,000Selling and administrative expenses:Advertising expense1,050,0001,050,0001,050,000Shipping expense1,700,0001,800,0001,900,000Salaries and commissions3,900,0004,200,0004,500,000Insurance expense300,000300,000300,000Depreciation expense750,000750,000750,000Total selling and administrative expenses7,700,0008,100,0008,500,000Net operating income300,000900,0001,500,000Required:1Identify each of the company's expenses (including cost of goods sold) as either variable,fixed, or mixed2Using the high-low method, separate each mixed expense into variable and fixed elements.Redo the company's income statement at the 5,000-unit level of activity using the3contribution margin format

Variable cost means the cost which changes in relation to changes in the level of production. Fixed…

Answered: Identify each of the company's expenses…

Business

Accounting

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $2,540,000 100 % Cost of merchandise sold 1,473,200 63 Gross profit $1,066,800 37 % Selling expenses $660,400 22 % Administrative expenses 254,000 9 Total operating expenses $914,400 31 % Income from operations $152,400 6 % Other revenue and expense: Other revenue 50,800 2 Other expense (25,400) 1 Income before income tax expense $177,800 7 % Income tax expense 76,200 4 Net income $101,600 3 % Question Content Area a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter…
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of merchandise sold 2,120,000 60.0 Gross profit $1,880,000 40.0 % Selling expenses $1,080,000 24.0 % Administrative expenses 640,000 14.0 Total operating expenses $1,720,000 38.0 % Income from operations $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) 2.0 Income before income tax expense $200,000 3.0 % Income tax expense 80,000 2.0 Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers.…
Lily Company, a British merchandising firm, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses for the last three months are given below: LILY COMPANY Comparative Income Statement Re For the Three Months Ended June 30 April 3.000 May 3,750 June Sales in units 4,500 Sales revenue.... P420,000 P525,000 P630,000 168,000 Less cost of goods sold 210,000 252,000
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average $1,390,000 100 % Sales 736,700 59 Cost of merchandise sold $653,300 41 % Gross profit $417,000 25 % Selling expenses Administrative expenses 152,900 10 Total operating expenses $569,900 35 % Income from operations $83,400 6 % Other revenue and expense: Other revenue 27,800 2 Other expense (13,900) 1 Income before income tax expense $97,300 7 % Income tax expense 41,700 Net income $55,600 2 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. econ.docx Show all Type here to search 6:05 AM 59 F 局 10/30/2021 12 prt sc 00 5.
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year $6,000,000 3,516,000 2,484,000 Sales $8,000, 000 4,984,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 3,016,000 1,480,000 1,092,000 712,000 2,192,000 618,000 1,710,000 774,000 84,000 Total expenses Net operating income Interest expense 824,000 96,000 $ 728,000 Net income before taxes $ 690,000 Members of the company's board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,00O. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales % % Cost of goods sold % % Gross margin % % Selling and administrative expenses: Selling expenses % % % Administrative expenses % Total selling…
Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements for the three most recent months follow: Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 6,750 $ 742,500 445,500 297,000 33,800 69,500 125,000 9,900 22,100 260,300 $ 36,700 August 7,250 $ 797,500 478,500 319,000 33,800 73,700 132, 100 9,900 22, 100 271, 600 $ 47,400 September 7,750 $ 852,500 511,500 341,000 33,800 77,900 139, 200 9,900 22,100 282,900 $ 58,100 Required: 1. By analyzing 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…
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 & Broun, Ltd. Income Statements For the Three Months Ended September 30 Sales in units July 4,000 August 4, s00 September 5,000 Sales Cost of goods sold $400, 000 240, 000 $450, 000 270,000 $500, 000 300, 000 Gross margin 180, 000 160, 000 200, 000 Selling and administrative expensesi Advertising expense Shipping expense 21,000 21,000 36, 000 84, 000 6, 000 15,000 21,000 38,000 90,000 6,000 15,000 34, 000 Salaries and commissions Insurance expense Depreciation expense 78,000 6,000 15,000 Total selling and administrative expenses 154,000 162,000 170, 000 Net operating income $ 6,000 $ 18,000 $ 30,000 Required: 1. Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed. Expenses Classification…
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd.Comparative Income Statement This Year Last Year Sales $ 7,340,000 $ 5,578,400 Cost of goods sold 4,730,000 3,511,500 Gross margin 2,610,000 2,066,900 Selling and administrative expenses: Selling expenses 1,375,000 1,079,500 Administrative expenses 711,500 615,000 Total expenses 2,086,500 1,694,500 Net operating income 523,500 372,400 Interest expense 101,000 91,000 Net income before taxes $ 422,500 $ 281,400 Members of the company’s board of directors are surprised to see that net income increased by only $141,100 when sales increased by $1,761,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales %…
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd.Comparative Income Statement This Year Last Year Sales $ 7,340,000 $ 5,578,400 Cost of goods sold 4,730,000 3,511,500 Gross margin 2,610,000 2,066,900 Selling and administrative expenses: Selling expenses 1,375,000 1,079,500 Administrative expenses 711,500 615,000 Total expenses 2,086,500 1,694,500 Net operating income 523,500 372,400 Interest expense 101,000 91,000 Net income before taxes $ 422,500 $ 281,400 Members of the company’s board of directors are surprised to see that net income increased by only $141,100 when sales increased by $1,761,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) McKenzie Sales, Ltd.Comparative Income…
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd.Comparative Income Statement This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,511,000 Gross margin 2,600,000 2,082,600 Selling and administrative expenses: Selling expenses 1,384,000 1,081,500 Administrative expenses 709,000 615,000 Total expenses 2,093,000 1,696,500 Net operating income 507,000 386,100 Interest expense 96,000 90,000 Net income before taxes $ 411,000 $ 296,100 Members of the company’s board of directors are surprised to see that net income increased by only $114,900 when sales increased by $1,766,400. Required: 1. Express each year's income statement in common-size percentages.
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $2,180,000 100 % Cost of goods sold 1,417,000 69 Gross profit $763,000 31 % Selling expenses $457,800 18 % Administrative expenses 174,400 7 Total operating expenses $632,200 25 % Operating income $130,800 6 % Other income 43,600 2 $174,400 8 % Other expense 21,800 1 Income before income tax $152,600 7 % Income tax expense 65,400 5 Net income $87,200 2 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company…