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

11ea7761_199a_5821_81a5_d36ed297e3d6_TB2580_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