Buxton Office Supply Company has the following information available regarding costs and revenues for two recent months.Selling price is $20.

March April

Sales revenue $60,000 $100,000

Cost of goods sold -36,000 - 60,000

Gross profit $24,000 $ 40,000

Less other expenses:

Advertising $ 600 $ 600

Utilities 4,200 5,600

Salaries and commissions 3,200 4,000

Supplies (bags, cleaning supplies etc.) 320 400

Depreciation 2,300 2,300

Administrative costs 1,900 1,900

Total -12,520 -14,800

Net income $11,480 $25,200

b. By use of the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixe expense c. What is the total cost equation? d. Estimate total cost if sales $ =\$ 75,000 $ Required: a. Identify each of the company's expenses (including cost of goods sold) as being either variable, fixed, or mixed. b. By use of the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. c. What is the total cost equation? d. Estimate total cost if sales = $75,000.

Question

Buxton Office Supply Company has the following information available regarding costs and revenues for two recent months.Selling price is $20.

	March	April
Sales revenue	$60,000	$100,000
Cost of goods sold	-36,000	- 60,000
Gross profit	$24,000	$ 40,000
Less other expenses:
Advertising	$ 600	$ 600
Utilities	4,200	5,600
Salaries and commissions	3,200	4,000
Supplies (bags, cleaning supplies etc.)	320	400
Depreciation	2,300	2,300
Administrative costs	1,900	1,900
Total	-12,520	-14,800
Net income	$11,480	$25,200

b. By use of the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixe expense c. What is the total cost equation? d. Estimate total cost if sales $ =\$ 75,000 $ Required: a. Identify each of the company's expenses (including cost of goods sold) as being either variable, fixed, or mixed. b. By use of the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. c. What is the total cost equation? d. Estimate total cost if sales = $75,000.

Quizplus · Accepted Answer

The Answer of Buxton Office Supply Company has the following information available regarding costs and revenues for two recent months.Selling price is $20.

	March	April
Sales revenue	$60,000	$100,000
Cost of goods sold	-36,000	- 60,000
Gross profit	$24,000	$ 40,000
Less other expenses:
Advertising	$ 600	$ 600
Utilities	4,200	5,600
Salaries and commissions	3,200	4,000
Supplies (bags, cleaning supplies etc.)	320	400
Depreciation	2,300	2,300
Administrative costs	1,900	1,900
Total	-12,520	-14,800
Net income	$11,480	$25,200

b. By use of the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixe expense c. What is the total cost equation? d. Estimate total cost if sales $ =\$ 75,000 $ Required: a. Identify each of the company's expenses (including cost of goods sold) as being either variable, fixed, or mixed. b. By use of the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. c. What is the total cost equation? d. Estimate total cost if sales = $75,000.

Buxton Office Supply Company Has the Following Information Available Regarding =$75,000 =\$ 75,000 =$75,000

Buxton Office Supply Company Has the Following Information Available Regarding $=\$ 75,000$