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    jeffjeff88's Avatar
    jeffjeff88 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jun 21, 2008, 01:56 PM
    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?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 22, 2008, 01:34 AM
    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.
    jeffjeff88's Avatar
    jeffjeff88 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jun 22, 2008, 10:07 AM
    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.
    highlanm's Avatar
    highlanm Posts: 1, Reputation: 1
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    #4

    Oct 6, 2009, 07:42 PM

    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.
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