The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below:
Required:
a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense.
b. Compute the company's total contribution margin for May.

Question

The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below:  
Required:
a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense.
b. Compute the company's total contribution margin for May.

Quizplus · Accepted Answer

The Answer of The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below:  
Required:
a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and fixed components. State the cost formula for each mixed expense.
b. Compute the company's total contribution margin for May.

The Central Valley Company Is a Merchandising Firm That Sells