Intro to Managerial Accounting, Managerial Accounting

Assignment Help:
I don''t know how to do a variable income statement. Here is my assignment:


The Used Books Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classified all books into five categories based on cost of acquisition and estimated sales price. See below for details about books purchased and sold during the last year (20XX).





Price Categories










A
B
C
D
E

Units Sold
2,000
1,000
500
400
400

Units Purchased
3,000
1,200
1,000
1,000
1,000








Resale Price
$4.00
$15.00
$25.00
$45.00
$40.00

Cost
$0.50
$5.00
$10.00
$20.00
$20.00




In addition to purchasing inventory (used books), The Used Book Store incurs some operating expenses.



Variable operating expenses



Shipping per book
$ 1.50





Fixed expenses



Internet-related costs
$5,000


Travel, etc.
2,000


Advertising
1,000


Other overhead
3,000




Required:

Prepare a variable costing (behavioral) income statement for the company in good format.
Prepare a second variable costing statement assuming 90% of all the books in each category purchased were actually sold.
Prepare a third variable costing statement assuming that the price is increased by 50% for all five categories (use original sales information

Related Discussions:- Intro to Managerial Accounting

Independence of observations, Independence of observations An important...

Independence of observations An important assumption for the simple linear regression model is the independence of errors. In many time series models, this assumption is violat

Calculate earnings per share, EMERALD LTD is planning an expansion programm...

EMERALD LTD is planning an expansion programme,which will require Rs 30 crores & can be funded through one of the following 1.issue further equity share of Rs 100 each at par.

Cost behaviour, How costs behave as the level of activity/volume changes.  ...

How costs behave as the level of activity/volume changes.  Why an understanding of cost behaviour is important ? Types Variable e.g. petrol, direct materials Fixed e.g.

Open account, Open Account Credit sales are usually on open account tha...

Open Account Credit sales are usually on open account that implies which the seller ships the goods to the buyer and afterward sends the bill invoice. Consignment In th

What are the features of zero base budgeting, What are the Features of zero...

What are the Features of zero base budgeting 1) Manager of a decision unit has to completely justify why there should be at all any budget allotment for his derision unit. This

accounts payable turnover ratio , Accounts Payable Turnover Ratio is a sh...

Accounts Payable Turnover Ratio is a short-term liquidity measure which is used to calculate the rate at which a company pays off its suppliers. Accounts payable turnover ratio is

Break even analysis, Break even analysis and target profit, taxes - Patters...

Break even analysis and target profit, taxes - Patterson Parkas Company's sales revenue is $30 per unit, variable costs are $19.50 per unit, and fixed costs are $147,000. a)Compute

Constraints, Constraints 1) A constraint of the type ≤ (≥) can be conve...

Constraints 1) A constraint of the type ≤ (≥) can be converted to an equation by adding a slack variable to (subtracting a surplus variable form) the left side of the constrain

Eoq mathematical model, EOQ mathematical model As costs of ordering and...

EOQ mathematical model As costs of ordering and holding stock are equal at the EOQ point, we can build a simple mathematical model to solve the problem, as follows: (Q/ 2) X

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd