identify each of the company s expenses including cost of good sold 323837

4 12 Morris & Brown, Ltd Income Statements For the Three Months Ended September 30 July August September Sales in units 4000 4500 5000 Sales revenue A$400,000 A$450,000 A$500,000 Cost of good sold 240,000 270,000 300,000 Gross margin 160,000 180,000 200,000 Selling and administrative expenses: Advertising expense 21,000 21,000 21,000 Shipping expense 34,000 36,000 38,000 Salaries& commission 78,000 84,000 90,000 Insurance expense 6,000 6,000 6,000 Depreciate expense 15,000 15,000 15,000 Total selling& admin expens 154,000 162,000 170,000 Net operation income A$ 6000 A$ 18,000 A$30,000 (Note: Morrisey & Brown, Ltd. Australian formatted income statement has been recast in the format common in the United States. The Australian dollar is denoted here by A$.) Question: Identify each of the company’s expenses (including cost of good sold) as either variable, fixed, or mixed. Using the high low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. Redo the company’s income statement at the 5,000 unit level of activity using the contribution format. 2) 5 12 Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit??Sales?$450,000?$30??Variable expenses?180,000?12??Contribution margin?270,000?18??Fixed expenses?216,000???Net Operating income?54,000??? What is the month break even point in units sold and in sales dollars? Without resorting to computations, what is the total contribution margin at the break even point? How many units would have to be…