This paper circulates around the core theme of Identify each expense as fixed, variable, or mixed.Prepare a contribution margin income statement based on a volume of 5,000 windows. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Mega Bright Window Cleaners’
monthly income statement at several levels of activity is as follows:
|
Windows washed
|
2,000
|
4,000
|
6,000
|
|
Sales revenue
|
$3,000
|
$6,000
|
$9,000
|
|
Cost of goods sold
|
1,200
|
2,400
|
3,600
|
|
Gross profit
|
1,800
|
3,600
|
5,400
|
|
Operating expenses
|
|
|
|
|
?Advertising expense
|
500
|
500
|
500
|
|
?Salaries and wages expense
|
700
|
900
|
1,100
|
|
?Insurance expense
|
200
|
200
|
200
|
|
?Postage expense
|
500
|
1,000
|
1,500
|
|
Total operating expenses
|
1,900
|
2,600
|
3,300
|
|
Operating income
|
$ (100)
|
$1,000
|
$2,100
|
Required:
a.
Identify
each expense as fixed, variable, or mixed.
b.
Prepare
a contribution margin income statement based on a volume of 5,000 windows.
