Management accounting: Variable and fixed cost
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?