In: Accounting
Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for the last two months are given below:
Sales in units |
5,000 units |
6,000 units |
Sales revenue |
$500,000 |
$600,000 |
Expense A |
10,000 |
10,000 |
Expense B |
125,000 |
150,000 |
Expense C |
50,000 |
74,000 |
Expense D |
10,000 |
18,000 |
Expense E |
30,000 |
30,000 |
Net income |
$275,000 |
$318,000 |
Which of the expenses (A, B, C, D, and E) are variable? How can you tell?
Which of the expenses (A, B, C, D, and E) are fixed? How can you tell?
Which of the expenses (A, B, C, D, and E) are mixed? How can you tell?