Question

The following description is used for several multiple-choice items. Please read the description carefully and do the entire High-Low method problem so that you can then respond to each question (near the end of the description for each item) that is asked by this set of items individually. The Yingle Bell Company has collected data for the past six months of operations. Sales in November were $10,000 and Commissions Expense was $3,000. Sales in December were $20,000 and Commissions Expense was $4,000. Sales in January were $15,000 and Commissions Expense was $3,450. Sales in February were $16,000 and Commissions Expense was $3,650. Sales in March were $14,000 and Commissions Expense was $3,225. Sales in April were $13,500 and Commissions Expense was $3,195. The firm recognizes that Commissions Expense is a mixed cost. In using the High-Low method to split this mixed cost into its fixed cost and variable cost portions, if the manager anticipates that sales

Answer 1

classmate Date Pige highest sales is ! As we can see December ($ 20,000) with commission expense of $ 4,000 and lowest sales is in November ($10,000) with commission expense of $3,000 So using high - low method Variable commission / $ of sales 4000 20000 0.1 / $ of sales Brxed commission 4000 Fixed commission + (0.1 X 20000) 4000 - Fixed commission Fixed $ 2000 3000 1 oooo Now + 2000 [ commission Now commission in July predicted which has sales of $18000 (0.1 2000 + 1 X 18000 2000 + 1800 $ 3800