Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below: All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed). Assume that the relevant range includes all of the activity levels mentioned in this problem.
Which of the selling and administrative expenses of the company is variable?

Question

Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below:  All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed). Assume that the relevant range includes all of the activity levels mentioned in this problem.
Which of the selling and administrative expenses of the company is variable?

Quizplus · Accepted Answer

11eacbfc_c7a1_5e81_8ffe_5924f6e26aae_TB7552_00 Variable expenses are proportional to activity. In this case, sales commissions are the only selling and administrative expense that is proportional to unit sales.

Comparative Income Statements for Boggs Sports Equipment Company for the Last