Top Posters
Since Sunday
j
7
s
7
6
e
6
6
b
6
f
6
s
6
6
j
5
n
5
p
5
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
anonkah anonkah
wrote...
Go to Answer
Posts: 66
Rep: 0 0
A week ago
King Comics is a wholesaler of popular comic books. The company's records indicate the following financial results:

Current YearPrevious Year
Units Sold50,00040,000
Sales revenue$250,000$200,000
Cost of goods sold 175,500 140,000
Gross margin  74,500  60,000
Operating expenses   23,500   20,000
Net operating income$  51,000$  40,000

Using the high-low method, what is the company's estimated variable and fixed components of operating expenses?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 2 times
1 Reply
Replies
Answer verified by a subject expert
ikiddingikidding
wrote...
#1
Posts: 71
Rep: 0 0
A week ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
($23,500 - $20,000) ÷ (50,000 - 40,000) = $0.35 variable cost per unit;
 $23,500 = ($0.35 × 50,000) + FC;
Fixed Cost = $23,500 - 17,500 = $6,000
1

Related Topics

anonkah Author
wrote...

A week ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
larrybrads
wrote...

Yesterday
This site is awesome
DragonHeart
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  83 People Browsing
 461 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 755
  
 278
Your Opinion
Who's your favorite biologist?
Votes: 423
Previous poll results: Which 'study break' activity do you find most distracting?