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Roy Company sells cars’ batteries for $25 each. The below are the single-step income statements of Roy Company for the two months June and July: June July Revenues Sales $125,000 $187,500 Expenses Cost of Goods Sold 1 25,000 2,000 5.100 37,500 2,000 7,600 Rent Expense Utilities Expense Advertising Expense Total Expenses 600 600 32.700 47,700 Net Income $92.300 $139.800 Classify the Company’s expenses as variable (VC), fixed (FC) or mixed (MC).* VC FC MC COGS Rent ??? Utilities O O Advertising O For the expense classified as mixed cost, specify its variable cost element using the high-low method Your answer For the expense classified as mixed cost, specify its fixed cost element using the high-low method R Your answer Assume that Roy Company sold 6.000 units during August, specify the total contribution margin. Your answer Assume that Roy Company sold 6,000 units during August; specify the utilities expense amount of the month. * Your answer Assume that Roy Company sold 4,000 units during September: specify the cost of goods sold of the month.
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