EXERCISE 5-12 (30 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE 2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
2. MILDEN COMPANY Budgeted Income Statement For the First Quarter, Year 3 Sales (12,000 units × $100 per unit) ... $1,200,000 Less variable expenses: Cost of goods sold (12,000 units × $35 unit) ... $420,000 Sales commission (6% × $1,200,000)... 72,000 Shipping expense (12,000 units × $9 per unit) ... 108,000 Total variable expenses ... 600,000 Contribution margin ... 600,000 Less fixed expenses: Advertising expense... 210,000 Shipping expense ... 30,000 Administrative salaries ... 145,000 Insurance expense ... 9,000 Depreciation expense... 76,000 Total fixed expenses... 470,000 Net operating income ... $ 130,000Problem 5-22 (45 minutes)