The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense Total operating expenses Net income Central Valley Company Comparative Income Statement Cost of goods sold Shipping Salanes & commission April 5,800 6,300 $ 762,300 $ 701,800 $871,200 405,450 378,972 $ 356,850 $322,828 $ March May 7,200 453,024 $ 418,176 per unit por unit per unit $ 67,600 89,500 168,000 $ 53,400 64,100 89,500 89,500 136,500 164,700 15,500 15,500 48,500 48,500 $ 382,300 $ 343,400 $389,100 $385,000 $ (25,450) $ (20,572) $ 29,076 $ 124,894 15,500 48,500 June 8,600 $1,040,600 530,706 $509,894 $ 64,500 89,500 167,000 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour, Develop a cost equation for each of the costs. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) 15,500 48,500
The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense Total operating expenses Net income Central Valley Company Comparative Income Statement Cost of goods sold Shipping Salanes & commission April 5,800 6,300 $ 762,300 $ 701,800 $871,200 405,450 378,972 $ 356,850 $322,828 $ March May 7,200 453,024 $ 418,176 per unit por unit per unit $ 67,600 89,500 168,000 $ 53,400 64,100 89,500 89,500 136,500 164,700 15,500 15,500 48,500 48,500 $ 382,300 $ 343,400 $389,100 $385,000 $ (25,450) $ (20,572) $ 29,076 $ 124,894 15,500 48,500 June 8,600 $1,040,600 530,706 $509,894 $ 64,500 89,500 167,000 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour, Develop a cost equation for each of the costs. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) 15,500 48,500
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...
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