I was wondering if anyone would have any ideas on how to transfer data from the income statement to the contribution margin income statement using a selling expense base and a administrative expense base (both of these are mixed costs) which would separate it into variable and fixed costs. My teacher said cost of goods sold is a variable cost. I really couldn't see the board so if anyone would have an idea on how to interpret the information I have (im not really sure what selling base and administrative base mean as far as translating the mixed costs into variable and fixed costs) . The selling and administrative base prices can be any hipothetical number. I just need to see how to transfer the data. This is for a test. Thanks a lot

income statement:

Sales: 1500000
(-)COGS: 800000 (he said this is a variable cost for this example)
(=)Gross margin: 700000
(-)selling expense: 400000
(-)administrative expense: 120000
(=)Net Operating income: 180000

Contribution Margin income statement:

Sales: 1500000
(-)Variable cost ?
(=)Contribution Margin ?
(-)Fixed cost ?
Net operating income: 180000

Given info

Selling base: ? (im not really sure what this means but this base would separate it from mixed costs to variable and fixed costs)

administrative base ? (im not really sure what this means but this base would separate it from mixed costs to variable and fixed costs)

item per unit?

Quote:

---

This is for a test.

---

It's YOUR test. We're not here to help you with test problems. Wow, I wish I could've just gotten online and gotten help w/my tests when I was going to school -- could've gotten those A's without working so hard.

This is a review question for my test, its not actually on the test. The teacher in class gave us this problem and showed us how to do it. I couldn't see the board, I don't even know if the information above makes sense.

What tests did you ever take at 9:00 at night? Could have just helped someone out. I've been trying to figure this out for like 2 hours now.