EXERCISE 5-12 (30 MINUTES)

3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE 3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
3.

Morrisey & Brown, Ltd.

Income Statement

For the Month Ended September 30

Sales revenue (5,000 units × A$100 per unit) ... A$500,000 Less variable expenses: Cost of goods sold (5,000 units × A$60 per unit) ... A$300,000 Shipping expense (5,000 units × A$4 per unit) ... 20,000 Salaries and commissions expense (5,000 units × A$12 per unit) ... 60,000 380,000 Contribution margin ... 120,000 Less fixed expenses: Advertising expense... 21,000 Shipping expense ... 18,000 Salaries and commissions expense... 30,000 Insurance expense ... 6,000 Depreciation expense... 15,000 90,000 Net operating income ... A$ 30,000

© The McGraw-Hill Companies, Inc., 2006. All rights reserved.

Solutions Manual, Chapter 5

229

Problem 5-14 (45 minutes)