Reference no: EM13170334
Morris & Brown, Ltd
Income Statements
For the Three Months Ended September 30
July August September
Sales in units 4000 4500 5000
Sales revenue A$400,000 A$450,000 A$500,000
Cost of good sold 240,000 270,000 300,000
Gross margin 160,000 180,000 200,000
Selling and administrative expenses:
Advertising expense 21,000 21,000 21,000
Shipping expense 34,000 36,000 38,000
Salaries& commission 78,000 84,000 90,000
Insurance expense 6,000 6,000 6,000
Depreciate expense 15,000 15,000 15,000
Total selling& admin expens 154,000 162,000 170,000
Net operation income A$ 6000 A$ 18,000 A$30,000
Question:
(1) Identify each of the company's expenses (including cost of good sold) as either variable, fixed, or mixed.
(2) Using the high- low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.
(3) Redo the company's income statement at the 5,000-unit level of activity using the contribution format.
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Prepare a flexible budget performance report for july
: Prepare a flexible budget performance report for July and which of the variances should be of concern to management? Explain.
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Prepare the companys cash budget
: Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded and prepare the company's cash budget for the upcoming fiscal year.
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Prepare a schedule of expected cash collections from sales
: Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter and assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
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What is the month break-even point in units
: What is the month break-even point in units sold and in sales dollars and without resorting to computations, what is the total contribution margin at the break-even point?
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Redo the companys income statement
: Using the high- low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.
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Compute top notch incs tax liability
: Top Notch pays New Zealand taxes of $114,000. Assuming a us tax rate of 35% compute Top Notch Inc's tax liability after any allowable foreign tax credits.
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What is the shadow price for electronic components
: What is the shadow price for Electronic Components? Explain to management how they might use this to increase profits? Calculate the upper limit for which this shadow price is valid. What happens when the upper limit is breached?
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State the partial pressure of oxygen
: The solubility of oxygen in water is 5.00M when the partial pressure of oxygen is 1.00 atm. Calculate the solubility of oxygen in water in contact with air
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Explain what is the mass of water that solidifies
: If the process occurs adiabatically and at constant (atmospheric) pressure (a) what is the mass of water that solidifies and (b) what is the change in entropy of the system?
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