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

Determine the traditional classification, Determine the Traditional classif...

Determine the Traditional classification a) Balance sheet or position statement ratios: balances sheet ratios deal with the relationship among two balance sheet item e.g., th

Transfer pricing, find full-cost& variable cost using transfer pricing meth...

find full-cost& variable cost using transfer pricing method

Explain cost flow in activity based costing, Normal 0 false f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Objectives of working capital decisions, After going through this section, ...

After going through this section, you must be capable to: Know the concept and characteristics of working capital; Identify with the difference among net working capital

What are the disadvantages of zero base budgeting, Disadvantages of zero ba...

Disadvantages of zero base budgeting 1) It is not suitable for all the activities in an organization 2) It has limited application in a profit making organization. In this c

Evaluate consumer surplus and the average price, Suppose the consumer is at...

Suppose the consumer is at coffee shop 2. Coffee shop 2 provides unlimited cups of coffee for the price of $9.00 per day. - How many cups would she drink a day and how much woul

Monitor, Monitor Let's start by having you think about the controlling ...

Monitor Let's start by having you think about the controlling your car (aka "driving")! Your steering, acceleration, and braking are not the random things to be done; they are

Explain the various stages of product life cycle, Various stages of product...

Various stages of product life cycle Typically the life cycle of a manufactured product will consist of the following stages: 1) market research : before any investment in

Post Cost, What is the correct formula for Post Cost?

What is the correct formula for Post Cost?

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