s2673yi
Nov 5, 2009, 09:05 AM
How do I find the Variable Cost of Goods sold?
I only have the following information.
Sales $254,000
Cost of Goods sold 122,000
Gross Profit 132,000
Operating expenses 156,000
Loss from operations $24,000
It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued.
I just need to know how to get Variable Cost of goods sold. Will someone please let me know how I can go about doing this?
I only have the following information.
Sales $254,000
Cost of Goods sold 122,000
Gross Profit 132,000
Operating expenses 156,000
Loss from operations $24,000
It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued.
I just need to know how to get Variable Cost of goods sold. Will someone please let me know how I can go about doing this?