2024 – Morrisey Brown Ltd of Sydney is a merchandising company that is the sole distributor of

How can we figure this problem – 2024

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   4,000         4,500       5,000  



  Sales   $400,000           $450,000       $500,000  
  Cost of goods sold  


      270,000       300,000  
  Gross margin   160,000         180,000       200,000  
  Selling and administrative expenses:                  
       Advertising expense   21,000         21,000       21,000  
       Shipping expense   34,000         36,000       38,000  
       Salaries and commissions   78,000         84,000       90,000  
       Insurance expense   6,000         6,000       6,000  
       Depreciation expense   15,000         15,000       15,000  
  Total selling and administrative expenses   154,000         162,000       170,000  
  Net operating income   $  6,000         $  18,000       $  30,000  





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


Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.


Redo the company’s income statement at the 5,000-unit level of activity using the contribution format.


Need assignment writing services that are 100% risk-free. Our writers are capable of providing the best assignment help to students in globally at best rates.

Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...

#write essay #research paper