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Momisey Brown, Lid., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers.
Required:
(a) Identify each of the company's expenses (including cost of goods sold) as either variable, fixed, or mixed.

Respuesta :

1)Variable cost remain constant in per unit whereas Fixed cost remain constant in totality .mixed cost is neither constant in per unit nor in totality .

cost Output Nature

cost of goods sold 240000/4000 or 270000/4500 or 300000/5000 = $ 60 per unit variable

Advertising 21000 at each level of output Fixed

shipping 34000/4000 = 8.5or36000/4500 = 8 neither constant in per unit nor in total Mixed

salaries and commission neither constant in per unit nor in total Mixed

Insurance 6000at each level of output Fixed

Depreciation 15000 at each level of output Fixed

2)change in cost (Highest activity- lowest activity) change in activity [Highest activity -lowest activity] Variable cost per unit Fixed cost at highest activity level   [Total cost -variable cost]

Shipping 38000 - 34000 = 4000 5000-4000= 1000 4000/1000 =$ 4 per unit

38000- [5000*4]

38000-20000

18000

salaries and commission 90000-78000= 12000 5000-4000=1000 12000/1000 =$ 12

90000-[5000*12]

90000-60000

30000

Shipping : 4x + 18000

salaries and commission : 12x +30000

3)Income statement ( contribution margin)

sales [5000*100] 500000

less: variable expense [76*5000] (380000)

contribution margin 120000

less: Fixed cost (90000)

net operating income 30000

**selling price = 400000/ 4000 = $ 100 per unit

Variable cost per unit = 60 + 4 shipping expense + 12 salaries and commission  = 76

Fixed cost = 21000advertising + 18000 shipping + 30000 salaries and

commission +6000insurance +15000 depreciation

  = 90000

To learn more about variable ,fixed, or mixed cost visit: https://brainly.com/question/17061986

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